Interestingly, Bitcoin (BTC), the best performing asset of the last decade has pushed above the $10,000 mark after successfully breaching the resistance levels. Firstly, the bulls broke the resistance at $9,600 after the cryptocurrency fluctuated between $9,200 and $9,600 for a week. During the sideways move, the coin fell to a low of $9,200 and rebounded. The bulls pick up momentum and reach a high of $10,150.
On the 4-hour chart, Bitcoin bounces on the bullish trend line on two occasions. In the first bounce, at the low of $8,400, BTC rally above $9,400. In the second bounce, the price retraces to the support of the trend line or the low of $9,200 and move up. The upward move was tremendous as it broke the $9,600 and $9,800 resistance levels and climbs above the $10,000 mark. Unfortunately, Bitcoin is retracing after testing the recent high.
Nonetheless, as Bitcoin climbs above the $10,000 mark, the coin also trades above 80% range of the daily stochastic. The stochastic bands are making a U-turn downward in the overbought region. The implication is that BTC is in the overbought region, where buyers are not on hand to push the coin upward. That is the reason Bitcoin is currently falling. In the overbought region, sellers are always on hand to push Bitcoin downward.
Bitcoin Eyes $10,360
Following a bullish break at the downtrend line, Bitcoin has a chance of an upward move. The bulls made an upward move but were resisted at $9,000 on January 14. The coin trade below the resistance level until the resistance was breached on January 28. The bulls also succeeded in breaking resistance of $9,600 and $9,800 as the price rally above the $10,000 mark. Bitcoin is presently eyeing the $10,360 which is probably the next major resistance.
On the upside, a break above the next resistance ($10,360) will propel the coin to rally above $11,000. Meanwhile, BTC is also trading above level 74 of the Relative Strength Index. The coin is also trading in the overbought region of the daily RSI. It is confirmed by the second indicator that BTC is likely to fall. As the RSI makes a U-turn downward, the cryptocurrency is likely to fall. On the downside, if the coin retraces and finds support, the resumption of the upward move will commence.
Charts: Tradingview.com
