Bitcoin is respecting Bollinger Bands quite well

Relative Strength Index – The current RSI is at a healthy 54 points, that means the market is neither overbought nor oversold. Looking at the trend in context – bullish – we can assume that the market is ready for another move up.

Bollinger Bands – It seems that the recent Bitcoin price action has been respecting Bollinger Bands quite a bit, we can see the peak at $8,300 earlier today lines up perfectly with the upper band. Moreover, we have also seen a dip to $7,723 a few hours ago which also lined up perfectly with the lower band.

Both the RSI and BBs suggest that Bitcoin’s price can go either way. However, looking at the current trend, we can conclude that another move up for Bitcoin and a test of $8,200 is not out of the question. On the other hand, in case the market turns bearish in the short term, we can expect a drop to $7,800 before a rebound.

My prediction is that Bitcoin’s price will at the very least test the $9,000 level in the short term (2-3 days). After that, hopefully BTC can establish support at that level and attempt to undertake the $10,000 wall. Cryptocurrency loves round numbers and no number is more round and emotional than $10k. Moreover, at the time of writing the market has positioned itself quite well for another rise in price.

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