Bitcoin Price Analysis: What drives BTC/USD rally towards $11,000?

Bitcoin price is bringing itself to test the key resistance at $10,500. The recovery comes after a dip that retested the support at $9,700. Clearly, it has been an eventful day in the cryptocurrency market. The granddaddy of cryptocurrencies continues to lead the bullish pilgrimage as it returns to its glorious days seen during last year’s bull run to $13,800. Besides, it seems the top is not even in sight as bulls see massive ground to cover towards its all-time high.

How far will the bull rally go?

The ongoing bull rally is mainly because of three factors. First, sentiments around BTC and other cryptocurrencies have been improving greatly. Speculation regarding the approaching Bitcoin mining halving event is pushing more and more investors into buying BTC in a bid to position themselves for the predicted parabolic rise after the event.

Second, geopolitical events such as the Coronavirus breakout is placing Bitcoin on the global map as an alternative currency that is suitable in times of crisis. In other words, demand for BTC keeps growing in politically unstable regions as well as those regions facing other political events such as the demonstrations in Hong Kong last year.

Lastly, Bitcoin growth is attributed to positive feedback regarding Bitcoin and other digital assets from government organizations. For instance, Fed’s chair Jerome Powell during a hearing this week showered Bitcoin and digital currencies with praises saying that cryptos need an element of privacy to be able to function as intended.

Bitcoin price technical picture

Bitcoin is trading marginally above $10,400 at the time of writing. On the upside, the price has closed in on the resistance at $10,500 but only managed a high at $10,435. The bulls are fighting to stay a float above $10,400. However, the main focus is to see Bitcoin trading above $10,500 and growing in value towards $11,000.

Meanwhile, current technical levels have aligned to show that Bitcoin bullish momentum could last longer in the coming sessions. The 50-day SMA is getting closer to the 200-SMA, further encouraging the bulls to have more confidence in upward movement. The RSI shows that Bitcoin is not oversold and could advance higher in the short term. In terms of support former resistance levels at $10,200, $10,000 stop any dips threatening to pull BTC back into the $9,000 range. Support at $9,700 will continue to hold Bitcoin in extreme losses ahead $9,400 and $9,200 support areas.

BTC/USD daily chart