Bitcoin To $10,000 This Month?

Summary

• After hitting a double bottom at the $6,500 level, many believe that the Bitcoin bear trend may be over.
• Bitcoin has surged over 40% in just the past month.
• The next resistance is at $10,000.but will Bitcoin surpass it?

Double Bottom

After hitting a double bottom at the $6,500 level support, Bitcoin has since surged in the past months. In less than just 30 days, it's since soared more than 40%, leaving investors who got in early at a very distinct advantage.

Despite the recent surge in the blockchain-based cryptocurrency however, many are skeptical. Despite this, I'm convinced Bitcoin will easily hit $10,000 this month, and potentially even go higher. This prediction is based off of a number of technical indicators as well as a series of momentum indicators.

$9,000 Holding Strong

After finally hitting a local low at the $6,500 support, it seems that Bitcoin investors have regained their confidence in the granddaddy of all coins. In just 30 days it's shot up 40%, but what's more impressive is the critical level of $9,000 holding up strong.

During the week of March 20th, crypto bulls desperately tried to push the price of Bitcoin above $9,000 - but as the chart below indicates, after several days of intense fighting with the bears, their attempt failed.

After struggling at the $9,000 level resistance for nearly 4 days straight, the bears finally took over and shot the price of Bitcoin down to a double bottom of $6,500 marking a loss of nearly 30% in just 11 days.

Since then however, bulls have pushed the price back up to the $9,000 mark and it seems to be holding very strong. This is a very good sign for the price of Bitcoin, as the next resistance level is at $10,000 and as we're about to see, the analysis indicates that it will cross this threshold very, very soon.

Stochastic RSI Analysis

When analyzing a cryptocurrency, or any asset for that matter, taking into account the longer term trends is absolutely paramount. With this in mind, when we take a look at the stochastic RSI, an indicator that measures the relative highs and lows of an asset.

When looking at a shorter time frame, it appears that the indicator is slightly bearish, which could signify a re-test of the $9,000 level. So far it's held strong though, so I don't have much worry about it falling through.

Looking at a longer time frame however, we find that the markets seem poised for growth. Taking a look at the one month stochastic RSI, we find that the lines just crossed over, signifying a longer term bullishness.

It's about time, as well. Cryptocurrency investors have known for years that while the markets may be extremely volatile, the fundamental value of Bitcoin is the same due to its revolutionary technology.

MACD Analysis

Next, we'll take a look at the MACD, which measures momentum. On the 1-day and shorter time frames, it appears bearish which also signifies a re-test of the $9,000 support level.

Again however, just like the stochastic RSI, the longer term time frames appear to be bullish. Take a look at the one week MACD, for example, pictured in the screenshot below.

Although the lines haven't crossed over yet, it appears that they're on trajectory to do so over the next week or two. This is another very bullish sign, which seems to suggest that after an initial re-test of the $9,000 level support, Bitcoin will be knocking on the $10,000 resistance level's door.

Putting it All Together

It's important to look at a multitude of indicators and analysis tools when trying to predict a future asset's price, and although there are some bears suggesting that Bitcoin's crash isn't over yet, most of the data seems to suggest that it is.

After hitting a double bottom at the $6,500 level and establishing it as a support, Bitcoin has soared over 40% in just under 30 days. It's shot through the $9,000 level resistance, and is currently bouncing off of it, suggesting that it's becoming a very strong support to prepare us to the climb past $10,000.

The indicators seem to suggest this, as well. While they're bearish in the short term, they're bullish for the upcoming weeks and months, indicating that after a quick re-test of the $9,000 support level to finally confirm its solidity, we'll see bulls push the price of Bitcoin to $10,000 and maybe even well beyond it.

Analyst’s Disclosure: I am/we are long BTC-USD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.