Bitcoin price hits $10,000, eyes $10,500 next on a new bullish chart pattern

Bitcoin price hits $10,000, eyes $10,500 next on a new bullish chart pattern

  • Bitcoin price hits $10,000 for the first time since February, pushing the crypto market cap over $267 billion
  • The Bitcoin halving event, scheduled to take place this week, is considered to be bullish for the digital coin
  • The buyers are now aiming for $10,500 on a bullish pennant chart pattern

Bitcoin (BTC/USD) price hit the $10,000 mark yesterday for the first time since February as the buyers now fight to force a weekly close above the $9,000 resistance, paving the way for a trip to $10,5000 on a bullish chart pattern.

Fundamental analysis: Central banks facilitate a boost for crypto

Bitcoin price broke out higher in the anticipation of the halving event expected to take place this week. The event will cut the future bitcoin supply in half i.e. the miners will have their rewards drop from 12.5 bitcoin to 6.25 bitcoin per block. 

“For the past few weeks, we have seen additional players enter the BTC market as prices have trended upward in anticipation of the halving event as bulls saw this as an opportunity to buy BTC ahead of a price pop and what many expect will be significant price appreciation,” Matthew Dibb, co-founder of Stack, a bitcoin index fund provider, said.

For some time now, numerous crypto analysts have argued that large money printing activities initiated by central banks will provide a boost to bitcoin and the crypto market in general. 

“Overall markets have been bullish since the March lows and this is across asset classes, including crypto,” Vijay Ayyar, head of business development at cryptocurrency exchange Luno, said

“Money printing by the Fed and other central banks globally have given a lot of confidence to investors that the economy will be supported no matter what.”

Following yesterday’s move, the cryptocurrency market capitalization has now jumped above $267 billion.

Technical analysis: Bull pennant in the making

Bitcoin has now cleared the major resistance around the $9,000 mark. A weekly close above this resistance area would set up a base for a potential move above $10,000. Also, any move back to the broken resistance area is likely to facilitate an opportunity to buy Bitcoin

Bitcoin (BTC/USD) daily chart (TradingView)

Looking short-term, the price action is creating a bullish pennant on an hourly chart, which is a continuation bullish pattern that aims to extend the uptrend higher. For it to be activated, Bitcoin price must break above $9,900 with the chart pattern target measures at $10,500 (the purple trend line).

Summary

Bitcoin price broke above $9,000, which is a very important support/resistance mark for the digital coin. The bullish pennant, if activated, could help extend the uptrend to $10,500.

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.

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