After a bearish weekend which saw Bitcoin (BTC) 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.
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.
Crypto market daily price chart. Source: Coin360
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. Source: TradingView
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. Source: Coin360
The overall cryptocurrency market cap now stands at $290.9 billion and Bitcoin’s dominance rate is 62.2%.
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