Bitcoin

Bitcoin’s price rally ends at $ 10,000, but those who buy on dips should watch these levels

Only 2 days left to halve or halve the block reward. The price of Bitcoin (BTC) reached USD 10,000 for the second time in 24 hours. Cointelegraph Markets and CoinMarketCap data show that the largest digital asset by market cap struggles to stay over $ 10,000.

Crypto market weekly price chart. Source: Coin360

Bitcoin’s price rally ends at $ 10,000, but those who buy on dips should watch these levels
Bitcoin’s price rally ends at $ 10,000, but those who buy on dips should watch these levels

A few hours ago The price lost momentum and the decline in purchasing volume broke the pattern of higher lows, causing Bitcoin to fall below the pennant seen in the 4-hour period.

1-hour chart of the BTC / USDT pair. Source: TradingView

After the recovery of 11.81% on Thursday Some traders were waiting for the price to pull back to retest the lower supports. But since April 29, retailers have been buying with every drop. The price also appears to be supported by a high-volume VPVR node at only $ 9,925, and on April 8, the price recovered directly from that node.

4-hour chart of the BTC / USDT pair. Source: TradingView

Still, there are signs that Bitcoin needs a withdrawal. In the shorter periods, purchasing volume has decreased significantly, the Relative Strength Index (RSI) has also dropped from 77 to 63, and the dynamics in the MACD histogram decrease as the MACD moves below signal line value, while the price is between 9,750 and $ 9,900 remains.

Is the price of USD 9,300 BTC an option?

Since April 29, the price of Bitcoin has increased by 30%. This also means that the price has risen by more than 160% since Black Thursday autumn. thats why A retreat to retest lower support would be natural, and without the next halving, traders who bought at $ 3,750 and $ 7,600 would be eager to take profits.

In the event of a withdrawal below $ 9,800, the price is expected to find support in the zone of $ 9,400 to $ 9,300. The USD 9,400 level corresponds to the value of 20 SMA and the long-term downward trend line.

Meanwhile, $ 9,300 is targeted at a high-volume node in the VPVR. If USD 9,300 does not offer support, traders will focus on USD 9,000, which is close to the Fibonacci retracement of 78.6%.

Fear and greed index in cryptocurrencies. Source: Alternative.me

Despite the short-term possibility of a drop to $ 9,000, Bitcoin’s price trend seems to be encouraging to cut in half, but the Cryptocurrency Fear and Greed Index shows investors that most traders are quite optimistic now.

While this was a strong linchpin of the index two weeks ago, Many traders view mood metrics as a counter indicator. When most investors feel bearish, traders buy. and the opposite when most traders feel bullish.

I look forward to it

BTC / USDT pair daily chart. Source: TradingView

At the moment Risk-averse traders may consider expecting a breakout above $ 10,600As the daily chart shows, Bitcoin is ready to target $ 11,500 above this level.

More aggressive traders will look at the 1-hour chart to see if the price can exceed the moving average of 20 (MA) and break the flag at $ 9,956.

Alternatively, traders could also wait to see if the price drops below $ 9,750 to revisit support in the range of $ 9,300 to $ 9,400.

The views and opinions expressed here are solely those of author and do not necessarily reflect Cointelegraph’s views. Every investment and trade movement involves risks. You have to do your own research when making a decision.

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