The historic $8,830 level of resistance has caused a period of disruption for Bitcoin following a staggering 30% rally since the turn of the year.
As previously reported by Coin Rivet, the $8,830 level will be a stern test for BTC as price was rejected there on October 10 as well as numerous times in May before the eventual rally to $14,000.
Bitcoin will now either come back to test the $8,450 level of support or attempt another breakout above $8,830, which could spur a rally towards the psychological level of $10,000.
However, before $10,000 is tested, there is another level of resistance at $9,330, which became a level of support following the bearish reversal from June’s local high.
The daily relative strength index (RSI) remains in a bullish position moving into the second half of the week after making a clear higher high of around 70 during yesterday’s rally.
Another bullish case for Bitcoin is that the 22 and 50 exponential moving averages (EMA) are moving at a rate of knots towards the 200 EMA, which would indicate a golden cross on the daily chart that will undoubtedly cause a significant rally to the upside.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.