The trading analysis from last week did follow my expectations. Price dipped below 8,000 only to gather some more strength and continue its rise higher. It is no surprise to anyone considering the past behaviour of this cryptocurrency. Currently, price stands at around 9,500.
What is surprising is the speed with which Bitcoin has climbed to its current level. What can we expect from now on?
It is really hard to analyse price after a steep climb. The usual logic says that after a steep rise, there is always a correction. With BTCUSD things are definitely not so easy and logical.
It seems like in the past few months even if there was a correction, it was a very minor one (with just a couple of exceptions).
From a technical perspective, the next psychological resistance level is 10,000. The closest support level is around 8,400.
From a daily perspective, we have four consecutive green candles, which exhibit bullishness in its prime!
I will be looking for some signs of rejection around the 10,000 resistance barrier.
On the other side, if price returns down to the 8,400 level, I will be looking for a bearish rejection sign indicating a trend continuation.
Having said that, a good way to look at the current data is to wait for a retracement and then look for a bullish confirmation before we go long.
Until then, I will be staying on the sidelines.
Have you checked my previous article on How Bitcoin Changed the Trading Industry