Bitcoin is on course to test the psychological $10,000 level of resistance in the coming weeks after breaking out of the $9,300 level yesterday evening.
BTC surged all the way to $9,420 before suffering a minor correction to retest the $9,300 level of resistance turned support.
If today’s daily candle can close above the $9,300 level, it will confirm a bullish breakout to the upside with clear price targets at $10,000 and $10,350.
The daily relative strength index (RSI) is also at a critical pivot point of 70. It was at the same point on two occasions in January before Bitcoin suffered a sell-off from $9,170 to $8,100.
However, with Bitcoin now trading above the 200 exponential moving average (EMA) and with the 50 EMA closing in on the 200 EMA, the world’s largest cryptocurrency is undoubtedly in a bullish posture.
The 50 EMA crossing the 200 EMA would signify a golden cross, which has historically caused a significant surge to the upside in the price of Bitcoin.
A rally above $10,000 will also tie in with the upcoming halving event, which will see block rewards for miners slashed to 6.25 BTC per block in May.
This has historically been a bullish event for Bitcoin as miners are incentivised to drive the price to the upside in order for the industry to remain profitable.
For more news, guides, and cryptocurrency analysis, click here.