- Bitcoin ignored the consolidating phase and solely sent the entire market on a journey of breaking barriers to the upside.
- Bitcoin must reclaim the position above $9,800 to allow the buyers to focus on the coveted $10,000.
Bitcoin continues to wow investors as we start the second half of the year. It is also becoming a trend for Bitcoin to correction higher towards the weekend. Last weekend sessions saw Bitcoin scale the levels re-entering $9,000 for the second time this year. The trading earlier this week displayed a bull lot that was already getting exhausted due to the unsuccessful attempt to break above $9,500.
However, Bitcoin ignored the consolidating phase and solely sent the entire market on a journey of breaking barriers to the upside. Bitcoin initially broke above $9,500; a move that cleared the path allowing the price to form new 2019 highs above $9,800.
A Fundstrat analyst had predicted last week that Bitcoin only needs to break $9,500 psychological level to be able to correct towards $9,800-$10,000. Although, BTC/USD stepped above $9,800 it retreated under $9,700. The bulls have managed to push it back above $9,700 level and the largest crypto on the market is changing hands at $9,723 at the time of press.
Technically, initial support lies at the former resistance ($9,500). Further breakdown is expected if Bitcoin clears this support. Other support areas to keep in mind include $9,250 (resistance turned support), $9,000, $8,750, $8,000 and $7,500.
The next course of action for Bitcoin is sideways according to the technical levels as seen on the 4-hour chart. The Relative Strength Index has started to range inside the overbought suggesting directionless trading in the short-term. The Moving Average Convergence Divergence (MACD) continued to move upwards above the mean line. The increasing divergence is an indicator of continued upside correction as bulls gain traction.
BTC/USD 4-h chart
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