Bitcoin Price Prediction: 10k before July
- The higher Bitcion moves, the easier it is for price to tag the important 10k value area.
- Strong momentum indicates Bitcoin will tag 10k before July.
Bitcoin hammering through resistance
Bitcoin has made new 2019 highs by tagging 9475. I think its important to identify what is happening here. The 45-degree angle is a key zone of resistance – but when it is trading above that angle, price is considered to be in a bullish trend. The final Gann arc is also acting as a source of resistance. But the most powerful resistance on this chart is the 6/8th inner harmonic at 9452.4. And it’s that particular level that I want to discuss. Theh 6/8th inner harmonic is a powerful pivot. Prices generally get rejected after tagging it for the first time in a long time. There is a metric crap ton of resistance with the 45-degree angle, outer most Gann arc, 6/8th inner harmonic and the time pivot on the 23rd. Considering how strong, fast and extended this current bull run has been for Bitcoin, I would be an easy bear here – except for one little indicator.
The %B oscillator is a great, great, great indicator that tells me if a trend is going to continue or end. I choose to set the bounds of this oscillator at 0.8 for the upper and 0.2 for the lower. I got these suggestions from John Bollinger’s book. In my last article, I discussed this strategy. On June 15th, the %B crossed above the 0.8 line – which means that a sustained and strong upwards move may occur. That is not enough of an indicator to take a trade though, that is why I look to the RSI. If the RSI is not overbought and the %B line crosses above 0.8, I’ve learned that a move higher is imminent and sustained. Those are the precise conditions that we see Bitcoin in right now.
Volume Profile Tells Us How Far
In an article I wrote back in April, I wrote that the 5k value area was not a value area of concern. The Volume Profile (horizontal bars on the right side of the image above) tells us how much was traded at a particular price level. We can determine important support and resistance levels by looking for high volume nodes (longer horizontal levels). The theory and behavior of what happens when price moves above or below a high volume node, price moves fast. A good example of this is when Bitcoin broke above the 4k value area and just shot right up to the next high volume node at 6400. The next high volume node above 6400 was 8077. Above that? There isn’t one. From this point on, Bitcoin has an easier chance moving up than it does moving down. The volume begins to get thinner and thinner. Hell, the 10k value area doesn’t even matter. Judging by this volume profile, Bitcoin is going to tag 10k very, very soon. It could happen this week. And I don’t think it will stop just because it gets to 10k.