BTC Looking to Take Control Above 10k

Weekly Timeframe

If you haven't already, go over to our technichal training section and read up on timeframes as this is going to rely heavily on understanding how they affect analysis. The weekly chart is now flirting with a close above the strong resistance level stemming from the 3/10 high directly before the BTC crash, which last week casued more trouble with a sell-off at the end of the week casuing a close below the level.

Undeterred, BTC continues to move upwards. With so many different factors indicating bullish market sentiment, including our Markets page's sentiment meter indicating a strong buying level on the higher time frames of the daily and weekly. Today BTC has tested the 10k level again and has just closed the daily candle 2 dollars above it. There does seem to be reason to expect a short term pullback.

RSI Divergence Entry Opportunity

There has been a textbook example of RSI divergence indicating a local top here. RSI has not yet been covered in the technical training but will be in the next few days. For now the basics are that as BTC charts a higher high, and the RSI continues to dip, the sellers seem to be regaining control over the market in the short term.

RSI divergence is a reliable indicator and occuring after an impulsive move up like this one is a good indication there will be at least a minor pullback before seeing continuation towards that weekly resistance level in the mid 10k USD range, which has been in play since late October but has not been touched since just before the crash in March.

How To Take Advantage

As is true in all markets, cool heads prevail. Pullbacks after large runs like this, which is not contained to today as BTC has been on a tear for 8 weeks now, are completely natural. They allow for smart market entries but may take another 24-48 hours to reveal themselves. A re-test of the fibonacci level that was just broken and it acting as support would be a good sign that 10k is very much in play and a drop to 7k would be finally out of the question. Therefore a good range for buying would be in the 9300-9500 USD range.

ADA is doing sepctacular, increasing 0.00181 (+%3.53), and rising in just the last hour. As I have been saying, the best way to take advantage of these BTC spurs is to be involved in Penny Coins which are correlated with BTC. This altcoin-BTC market correlation is reminiscent of the scene which set up the bull run of '17.

ADA will also have to cool off eventually as nothing runs up forever. Currently the range I posted yesterday which indicated a sell in the 0.05300-0.05500 USD range is very likely to occur overnight today, absent a full market breakdown in BTC.