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Bitcoin $10,000 – A weekend rally is all it needs

Bob Mason

Bitcoin slipped 4.1% on Friday, reversing Thursday’s 4.71% gain, to end the day at $8,888.5, Friday’s fall leaving Bitcoin up just 1.1% for the week, Monday through Friday, to lag behind Bitcoin Cash’s 11.3% gain.

It was a mixed day for Bitcoin, which managed to rally to an intraday high $9,381.1 in the late morning, before an afternoon slide, with the day’s high falling short of the first major resistance level of $9,511.33.

An afternoon reversal saw Bitcoin fall an end of the day $8,888.5 low, with Bitcoin falling through the 23.6% FIB Retracement Level of $8,996 to test buying appetite going into the weekend, the end of day low coming within touching distance of the day’s first major support level of $8,855.53, Bitcoin having managed to avoid key support levels through the morning.

News of another large sell order for Bitcoin will have weighed late in the day, though with the bullish trend still intact, Bitcoin may well be able to stomach an in excess of $140m sale that would be considered orderly compared with some of the volatility seen of late.

In spite of the late in the day reversal, the bullish trend formed back at 6th April’s swing lo $6,500.2 continues to remain intact, despite a close at sub-$9,000 levels, an early move through the $9,000 levels needed over the weekend to give the bulls a chance at hitting $10,000.

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BTC/USD 28/04/18 Hourly Chart

At the time of writing, Bitcoin was up 2.68% to $9,159, with Bitcoin managing to break free of the 23.6% FIB Retracement Level of $8,996 at the start of the day to kick off the day with a bullish trend, moving through to a morning high $9,185 in the first few hours of the day.

While the day’s major support and resistance levels have been left untested, buying appetite at the 23.6% FIB Retracement Level of $8,996 was enough to drive Bitcoin to current levels, supported by positive moves across the broader markets.

Based on current sentiment, we would expect Bitcoin to move through to $9,2000 levels to test the day’s first major resistance level of $9,216.87, with general market sentiment to dictate whether Bitcoin can have a run at the 2nd resistance level of $9,545.23 and bring back the chatter of Bitcoin at $10,000.

Investors have been quick to lock in profits at the end of each day in the last week that has ultimately pinned Bitcoin back from stronger gains and hitting $10,000, any moves through to $10,000 this week, not only reinforcing the current bull trend formed at 6th April’s $6,500.2, but also likely to draw in side lined investors waiting for certain milestones before returning to the market.

Bitcoin Cash’s hard fork may dampen the outlook for Bitcoin, but until it loses the top spot, investors will continue provide support, the only downside for Bitcoin this weekend being the prospects of a $140m sale of Bitcoin on the market.

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This article was originally posted on FX Empire