Early morning, after playing for some hours with its latest resistance level, at 9,950 Bitcoin has pierced through it with a decisive impulse in a large hourly candle that drove its price beyond $10,000.
Bitcoin continued bullish the whole night in the eastern markets and, after bouncing in the vicinity of the $11,000 level now is trying to consolidate.
Looking at the weekly chart, we see that the “cup with handle” formation has been crossed to the upside. That shows a new bullish leg is starting. We should mention, also that the psychological $10,000 level was broken out with a large bullish weekly candlestick that shows a lot of bullishness.
If we look at the circles on the chart, we can see that in the last bullish cycle, after a bearish candle and posterior engulfing bullish candle, the price didn’t look back and went straight up to almost touching the $20,000 in four weeks. If history repeats itself, we could experience a similar price movement.
Support & Resistance Levels
On this daily chart, we can see an overview of BTC’s support and resistance levels. The new short-term resistance level to break is $10,948, which is a proxy for the $11,000 level. If the price breaks, it will try to reach $11,800, its next resistance.
The support level in case of a possible retracement will be between $10,000 and $9,950. If that fails, the next one is $9,000.
As we can see, the use of round-number key levels is common on the Bitcoin, so if you are trading it short-term be attentive to how price reacts to them.
Note: To better watch the charts please enlarge them clicking on the arrowed square at the top right.