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.
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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.