Bitcoin price analysis – BTC/USD bounced from key support, further growth imminent

 

• BTC/USD managed to push for a reversal from the tested $9,800 support only to hit a snag at $10,200.

• Bitcoin must settle between $10,200 and $10,400 to allow the bulls to focus on higher levels heading towards $11,000.

Many cryptocurrency analysts and experts have become strongly bearish in the past few weeks. This was fueled by the failure to break the psychological resistance at $11,000 even after pushing for recovery from the recent dive to $9,300. Moreover, Bitcoin has had a rough time defending support areas, the latest being the dip below $10,000.

However, the 4-hour chart clearly shows an asset that has potential for growth. BTC/USD managed to push for a reversal from the tested $9,800 support. In fact, the price ascended to levels above the 100 Simple Moving Average (SMA) 4-hours but the momentum hit a dead-end at $10,200 (first resistance area).

Also supporting Bitcoin is the main trendline since August 29 lows. Besides, Elliot Wave Oscillator has posted four consecutive bullish session following the late Wednesday recovery. Trading at $10,101 at the time of writing, Bitcoin only needs a break above the $10,200 resistance. A move the will pave the way for a trajectory to $10,400 (second resistance and breakout point). It will still be a win for the bulls if the price settles between $10,200 and $10,400 as it will allow them to focus on the medium resistance between $10,800 and $11,000.

BTC/USD 4-hour chart

 

John Isige – FXStreet

David Ogden – Http://markethive.com/david-ogden