Bitcoin Price Analysis: BTC Bears Are Weary: Bulls Set Eyes on $11,000
Bitcoin Price Analysis: BTC Bears Are Weary: Bulls Set Eyes on $11,000Source: Bitcoin
- Bitcoin recovers lost ground on Friday grinding above $10,500.
- Bitcoin is virtual property, a court in China rules.
Following the extreme oversold conditions in the cryptocurrency market this week, digital assets are starting to wake up. Although Bitcoin impressed investors with a more than $1,000 reversal yesterday, the upside was capped at $10,800. In fact, Bitcoin lost ground on Friday during the beginning of the European session.
However, the buyers managed to sustain BTC above the 100 Simple Moving Average (SMA) 1-h support. An intraday low formed at $10,244 (on Coinbase) has given way to a correction back above $10,500.
As Bitcoin battles to shake off this weeks bear pressure, a court in China made a groundbreaking ruling for Bitcoin. The court stated that Bitcoin is virtual property and, therefore, protected by the legal framework in the nation. The ruling does give Chinese national assurance that they are protected within by the laws to own Bitcoin as long as they do not engage in trading or mining activities which are illegal in China.
Bitcoin Technical Picture
Bitcoin has a bullish bias at the time of writing. The short-term 50 SMA 1-h is moving upwards and a double-cross above the longer-term 100 SMA could give Bitcoin a push above $10,800. Yesterdays break past the descending trendline was key to the recovery and the momentum that still exists on the market.
The Moving Average Convergence Divergence (MACD) is sitting comfortably in the positive region. The decreasing negative divergence suggests that the bulls are gaining traction.
BTC/USD 1-h chart Bitcoin Chart | Source: Tradingview
The hourly chart shows $10,000 as being a viable support level. As long as BTC can stay above $10,000, a correction towards $11,000 as possible before the close of the session on Friday. Other key support levels to look out for are $9,600, $9,200 and the primary support at $9,000.
BTC key Technical Levels
Key Support Levels: $10,000, $9,600 and $9,000.
Critical Hurdles: $10,800 and $11,000.
MACD 1-h chart: Stays on the positive side – decreasing negative divergence suggests growing bullish influence.