Over the weekend many traders expressed fear that a drop below $9,450 would solidify a bearish trend reversal but previous analysis by Cointelegraph suggested that a sharp retrace that could pull the price to the $9,500 to $8,800 zone was needed after Bitcoin’s recent strong performance.
After a bearish weekend which saw Bitcoin price drop 8.76% to $9,444, the price has again reclaimed the $10K mark. Prior to the breakout, the price was steadily moving upward, reclaiming the $9,800 support on increasing trading volume.
Cointelegraph contributor Michaël van de Poppe also explained that above $9,450 Bitcoin remained bullish as many traders would be looking to close the CME gap at $10,460.
Despite the weekend correction, a golden cross between the 50 and the 200-day moving average was unaffected and the relative strength index (RSI) on the daily timeframe remained near 50.
BTC USD daily chart.
Today’s price action brought the price back above the 23.6% Fibonacci retracement level at $9,500 and also above the 20-MA of the Bollinger Band indicator. If the price can manage a close above $10,000 then it seems likely that traders will look to follow the CME narrative that Bitcoin price should close the recently created gap at $10,460.
Before filling the gap, Bitcoin price will need to overcome the $10,168 to $10,330 zone, which the volume profile visible range (VPVR) suggests could be a challenge.
Flipping this zone to support would open the door for the price to extend to the upper Bollinger Band arm at $10,500 and as discussed in a previous analysis, the VPVR shows that above $10,500, Bitcoin price could rapidly ascend to $11,000 to $11,500.
Altcoins also showed significant strength as Bitcoin’s price rallied back above $10,000. Tezoz (XTZ) rallied 12.63%, Ether (ETH) 8%, XRP 4.34% and Chainlink (LINK) 5.38%.
Bitcoin daily price chart.
The overall cryptocurrency market cap now stands at $290.9 billion and Bitcoin’s dominance rate is 62.2%.