Bitcoin surged by 5% over the weekend following a bounce from the daily 200 exponential moving average (EMA).
The 200 EMA has been a historic point of support and resistance throughout Bitcoin’s 11-year history and was a key obstacle during the 2018 bear market.
While Bitcoin continues to trade above the moving average, it remains in a bullish posture moving into the rest of the week, with upside price targets emerging at $8,830 and $9,050.
However, as previously noted in Coin Rivet’s analysis, Bitcoin needs to close daily candles above the $9,000 level as this would provide a platform for continuation towards the psychological level of $10,000.
A rally to $10,000 would tie in with the upcoming Bitcoin halving event, which has historically preceded BTC making new all-time highs.
The halving will see block rewards for miners slashed to 6.25 BTC, which means Bitcoin’s price would need to rise in order for the industry to stay profitable.
Miners are said to be influential in Bitcoin price action as it’s a relatively illiquid market. This means that if miners are incentivised to drive the price to the upside, it’s within their power to do so.
If the price of Bitcoin sees yet another gruelling rejection below $9,000, it can be expected to slump back towards the $8,450 and $8,200 levels of support.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.