Bitcoin Daily Chart Indicates It Is Going Parabolic To $9K and $10K

Aayush Jindal

1 year ago

2 mins read

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Bitcoin broke a couple of important hurdles near $7,500 and $8,000 on the daily chart against the US Dollar. BTC price action indicates a strong rise towards $9,100 or even $10,000.

Bitcoin price surged $500 and settled above the key $8,000 resistance against the US Dollar.
A new 2020 high is formed near $8,464 and the price is currently correcting lower.
There was a break above a major bearish trend line with resistance near $7,630 on the daily chart of the BTC/USD pair (data feed from Kraken).
The pair is also trading above the 100-day SMA and it could rise further towards $9,000.

Bitcoin Going Parabolic Again

Recently, there were bullish moves in bitcoin above the $7,500 resistance area against the US Dollar. More importantly, there were a couple of key bullish breaks on the daily chart.

The daily chart suggests that the price formed a strong support base near $6,560 before starting the current rally. There was a clear break above a major bearish trend line with resistance near $7,630.

As a result, bitcoin climbed above the $8,000 resistance and settled above the 100-day simple moving average. The recent rise was stalled near the 50% Fib retracement level of the downward move from the $10,564 high to $6,449 low.

However, the current price action, bullish breaks above the trend line and the 100-day SMA indicate that the bulls are aligning for the next rally above the $8,500 resistance.

The next major resistance is near the $9,000 and $9,100 levels. The 61.8% Fib retracement level of the downward move from the $10,564 high to $6,449 low is also near the $9,000 level.

If the price continues to gain momentum above $9,100, there are chances of a run towards the $10,000 resistance area.

Dips Remain Supported in BTC

In the short term, there could be a couple of downside corrections. In the mentioned case, an initial support is near the $8,300 level.

The main support is near the $8,000 level or the 100-day SMA, which was the recent breakout zone. Any further losses may perhaps lead the price towards the $7,500 support area in the near term.

Looking at the chart, bitcoin price is showing a lot of positive signs above the $8,000 support and the 100-day SMA. As long as there is no daily close below the 100 SMA, there are chances of a strong rise towards the $10,000 resistance.

Technical indicators:

Daily MACD – The MACD is slowly gaining pace in the bullish zone.

Daily RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.

Major Support Levels – $8,300 followed by $8,000.

Major Resistance Levels – $8,500, $9,000 and $9,100.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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