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BTC/USD: Bitcoin has at least 3 reasons to move above $10,000

  • BTC/USD has the potential to return above $10,000.
  • On the intraday charts, BTC/USD is vulnerable to the range-bound trading.

Bitcoin is trading at $9,150 after a sharp sell-off to $8,800 on Thursday. The first digital asset failed to settle above $10,000 after the halving and lost over 4% on a week-on-week basis. However, according to Bloomberg Intelligence analyst Mike McGlone, the coin is well-positioned to resume the growth and break above the psychological barrier.

The expert pointed out several factors that may become serve as a catalyst for a sustainable Bitcoin rally. First of all, he mentioned the growing number of active Bitcoin addresses. The total number of addresses with balance surpassed $30 million, which is the highest number of on record.

Secondly, he mentioned the increase of the assets under the management of Bitcoin investment funds. In a recent update, Grayscale Investments reported that the value of all assets under management hit $3.6 billion with over 86% of them attributed to Bitcoin Trust.

He also mentioned the record-high Bitcoins' futures open interest that may also result in the bullish rally.

BTC/USD: Technical picture

Meanwhile on the intraday level, BTC/USD recovery stopped short of $9,200. This resistance is followed by a stronger barrier of $9,300, reinforced by 1-hour SMA50 and 4-hour SMA100. Once it is out of the way, the upside is likely to gain traction with the next focus on $9,550-$9,600 area, which includes Thursday's high and the above-mentioned congestion area.

On the downside, move below $,9000 will increase the downside pressure and bring $8,700 into focus. It is followed by a stronger barrier of $8,600 created by 4-hour SMA200. If it is broken, the sell-off will gain traction with the next focus on $8,300-$8,150 area, which includes strong technical levels daily SMA100, SMA50 and SMA200 as well as 61.8%  Fibo retracement for the downside move from February 2020 high.

BTC/USD daily chart

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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