Bitcoin price saw a 3% move to $8,833 is bringing the digital asset closer to a retest of the weekly high. Will it happen before this new week starts?
Bitcoin Price Must Overcome This Key Hurdle for $10K
Sentiment wise, bitcoin’s path to $10,000 remains strong and each week a number of positive media reports appear to be re-enforcing the bullish consensus for the top digital asset.
The growing premium on Grayscale Bitcoin Investment Trust (GBTC) and impressive data from CME Bitcoin futures show that there is a continuous rise in institutional demand for Bitcoin. In an email to clients, CME Group explained that:
“May is shaping up to be the strongest month ever for CME Bitcoin Futures.” And the exchange commented that “The number of unique accounts continues to grow, showing that the marketplace is increasingly using BTC futures to hedge Bitcoin risk and/or access exposure.”
Over the weekend Bitcoin consolidated in the $8,450 – $8,600 range for the majority of Saturday, then on Sunday the digital asset popped above the $8,530 support for a 3% move toward the $8,840 resistance before pulling back to $8,650.
The short profit taking was nothing like the 12% rejection at $9,081 that occurred last week and traders can take comfort in knowing that BTC remains in an uptrend. But it should be noted that the daily chart shows the digital asset trading within a rising wedge, which can be interpreted as a bearish signal.
Popular crypto-analyst Josh Rager tweeted that Bitcoin’s move above $8,530 and $8,731 shows the uptrend remains intact and Rager forecast that if BTC moves above $8,846 then a move to the “mid $9k’s” is on the cards.
A number of analysts are now suggesting that $8,200 represents a crucial support level and a dip below this point could see bitcoin revisit $7,000.
Recently Alex Kruger also shared his analysis of key support and resistance levels for BTC/USD [coin_price] and similar to other forecasts, bitcoin has few immediate resistance points above $10,000.
Looking Forward
Over the short-term, Bitcoin appears to have shifted to a new range of $8,600 – $8,800 and it could spend the remainder of Sunday consolidating within this zone.
The 4-hour MACD remains bullish and the RSI has turned down from 60 and currently at 53. Traders should keep an eye on the hourly RSI is oversold bounces near 42.5 have proven to be quite reliable.
Do you think Bitcoin price will reach $10k this week? Share your thoughts in the comments below!
Images via TradingView.com, Twitter, Shutterstock
