Never say never, but bitcoin looks set to topple the $10,000 mark across global exchanges today.
While BTC is yet to pass the notable milestone on western exchanges, trading in Asia has already seen the cryptocurrency hit as high as $10,086 today on data source CoinMarketCap.
Bitcoin first started peeping above the psychological hurdle on several South Korea-based cryptocurrency exchanges last night.
As per CoinDesk’s Bitcoin Price Index, however, the cryptocurrency is still trading at $9,917 levels.
That said, the chart analysis shows the dominos are falling, and bitcoin is set to pass the historical price point sooner rather than later.
The above chart shows:
- A minor drop to $9,500 levels yesterday was quickly undone as the cryptocurrency found takers around the upward sloping 50-MA (moving average).
- The 50-MA, 100-MA and 200-MA favor further upside in prices (sloping upwards).
- More importantly, the rising trendline (drawn from Nov. 12 low and Nov. 24 low) is intact. The trendline is seen offering support today $8,800 levels.
- Potential bearish price RSI divergence: The RSI would form lower highs if the current 4-hour candle closes below the 4-hour 50-MA level of $8,625. That would confirm a bearish divergence
Bitcoin has potential to extend gains to $10,400 levels, as suggested by the bull flag breakout earlier this month.
The slight cause of concern would be confirmation of the bearish-price RSI divergence. In such a case, the cryptocurrency could witness a deeper pullback to $9,000 levels. However, that may not necessarily yield a trend reversal for two reasons:
- In the past, bitcoin has made major tops following the confirmation of the bearish price RSI divergence on the daily chart. A 4-hour bearish divergence is unlikely to yield anything more than a minor pullback.
- The outlook remains bullish as long as the rising trend line is intact. Only a break below the trendline support would signal a near-term bullish-to-bearish trend change.
Dominoes image via Shutterstock