Bitcoin Price Analysis: BTC/USD spikes 14% from February swing low as $11,000 beckons

Bitcoin price approached $10,400 in a new bull-run that followed a recent dip to the support at $9,700. The pullback was indeed necessary for the surge above $10,000. Bitcoin is currently valued at $10,334 after correcting higher only 0.64% on the day.

Fed Chair upholds Bitcoin’s privacy

Bitcoin rose to a five-month high at $10,355 following remarks by the Federal Reserve Chairman, Jerome Powell during his testimony at the U.S House Financial Services Committee. Powell said that there is a need for digital currencies to have privacy features in reference to the soon to launch China’s digital yuan. Powell stated:

A ledger where you know everybody's payments are not something that would be particularly attractive in the context of the U.S.

While the recent surge seen in the last 24 hours is attributed to Powell’s comments. The growth over the last couple of months has been linked to other key factors such as the May 2020 Bitcoin halving event, the China Coronavirus outbreak, and increased institutional buying activities.

Bitcoin price technical picture

Bitcoin is settling after the incredible rise from $9,700. Technical indicators suggest that Bitcoin will continue to stay bullish in the coming sessions. The RSI is holding the ground 70 and even leveling to show that sideways action is probable. The momentum indicator doubles down on the sideways action as it moves horizontally at 611.

Initial support is seen at $10,250 in the case a reversal ensues. Other key levels traders need to keep in mind are $10,250, the 100SMA on the 4-hiur chart and $9,700. The primary support for Bitcoin lies at $9,000 - $9,250.

BTC/USD 1-hour chart