These five technical signals show that Bitcoin is about to test $ 10,500
Bitcoin has continued to push higher after a weekend slump. As of this writing, the leading cryptocurrency is trading at $ 9,450, a few basis points below the local high of $ 9,480.
The cryptocurrency is still hoping to break above the crucial $ 9,500 level. However, analysts say there is a case of Bitcoin bulls that is rapidly forming.
Bitcoin’s technical perspective is beginning to favor bulls
Until it exceeds $ 10,500 or less than $ 8,500, Bitcoin is caught in a macro consolidation. Analysts say, however, that the possibility of the cryptocurrency breaking the current range to the upside is strengthening.
A trader shared the chart below, outlining four key technical reasons why Bitcoin could move towards $ 10,500, then $ 11,500.
Bitcoin maintained resistance at $ 8,900, a daily demand zone that has acted as support for the past month.
BTC is pushing through a diagonal resistance that formed when it hit $ 10,500 in early June.
Bitcoin is moving above the second quarter volume weighted average price.
The one-day relative strength index (RSI) has crossed the midpoint of 50. This is important as the RSI midpoint has acted as a tipping point for Bitcoin trends in the past two years.
The cryptocurrency remains above the 200-day exponential moving average.
Taking into account technical factors, the operator postulated that Bitcoin could test $ 10,500, then $ 11,500 in the coming weeks.
However, the trader did note that there are some technical events that could force him to change his bias. These include Bitcoin not exceeding $ 10,500 once again, RSI falling below 50, and a price drop in an influx of volume.
Not the only positive analyst
The trader who shared the chart above is not the only analyst who is starting to lean bullish on cryptocurrencies.
As reported by NewsBTC, an analyst noted that Bitcoin has formed a “hidden bullish divergence” with its three-day RSI. The divergence suggests that the cryptocurrency will rise to $ 10,500 and will only be invalidated if BTC falls below $ 8,800, he commented.
BTC is also being powered by altcoins.
While Bitcoin is up a modest 5-6% in the past three days, multiple altcoins have gone parabolic. Cardano, VeChain, and Dogecoin are among the few dozen cryptocurrencies that have earned more than 30-40% in the past three days alone.
These cryptocurrencies have worked so well that Bloomberg, Dave Portnoy, and other prominent names in the investment space are once again talking about digital assets.
Considering the reach of these people and companies, this focus could trigger an influx of buying interest in Bitcoin.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.