Bitcoin Price Recovered But Will Still Face Big Obstacles
For bitcoin (BTC), the weekend became relatively relaxing compared to the price action during the past two weeks.
Last Saturday, the price arrived within $10 of $10,000 before pulling back to $9,794. Currently, the price continues to meet resistance at $9,900, after failing to break above the $10,000 price mark.
In the 6-hour timeframe, the volume profile visible range (VPVR) displayed the price rejecting at the high-volume node at $9,883. At the same time, it can see purchasing volume is starting to outpace selling volume.
Even though it can’t hold above $9,900, the shorter timeframe also indicates bitcoin’s price showing higher lows since the decline on February 19 to $9,352. Also, the price is holding well over the 20-MA of the Bollinger Bands indicator.
In addition to that, a high-volume surge may quickly push the price to the upper Bollinger Band arm at $10,126. However, BTC might have some difficulties ahead.
In case bitcoin can hold the $9,850 support and surge to more than $9,883, they might see the price increase to $10,200.
And this is because it is currently in between VPVR nodes at $10,210 and $9,892.
In the previous analysis, Cointelegraph contributor Keith Waring stated $10,000 is a less significant level to achieve when thinking an important resistance at $10.300 awaits.
Aside from that, Waring explained that Bitcoin’s new setup strengthens the chances of the price retaking the $10k mark.
But the CME close at $9,740 on February 21 suggests traders believe in the CME gap narrative, and they will hold their powder with the expectation of the price revisiting the gap.
Bullish Price Analysis
Meanwhile, cryptocurrency analyst Michael Van De Poppe chose to take a more bullish point of view.
He tweeted, “Retest done. As long as this level remains support, I’m expecting continuation towards $11,000/$11,600.”
Currently, bitcoin price further pushes along the descending trendline at $9,989. And a break over this trendline might out the price above the VPVR high volume node at $9,892, closer to the 61.8% Fibonacci retracement.
Also, this would strengthen the potential of BTC in taking out the previous high at $10,250.
Moreover, the daily relative strength index (RSI) is also on its way out of neutral territory as it recently surges above 55.
Then, another positive sign is the daily moving average convergence divergence (MACD) histogram. And it is a sign that selling is abating as bull volume increases.
In the short-term, everyone will watch for bitcoin price to climb to $10,200 and check if the digital asset can reclaim this resistance as support. If so, it would set the price up for another go at $10,300.
For instance, if the price does fall to fill the CME gap at $9,740, traders will likely see this as a purchasing opportunity. And this is because bitcoin has found support at this price since February 7 and below the $9,740 there has also support at $9,450.
Furthermore, it seems to indicate huge buying support above $9,500. And the price needs to break or below the regions of support and resistances for huge decisive moves.
