Bitcoin (BTC): in the long term, the technical challenge remains to exceed $ 10K

The bitcoin price has filled the bearish gap opened on Monday on the future contract, our anticipation was good. Let's make a technical update.

Key technical factors of the article:

• The technical scenario of the $ 8,500 / $ 10,000 range has been confirmed and the market has bridged the bearish gap opened on Monday on the future contract.
• The market remains covered by the major resistance at $ 10K, what are the possible scenarios by the end of May?

It didn't take long during Bitcoin to reach the $ 9,800 and fill the downside gap opened on Monday on the future contract. Our view of the technical market was therefore good, the listing hole no longer exists and the market continues to oscillate within the trading range between support at $ 8,500 and $ 10K.

This speed up to $ 10K is due to new compensation features in the block mining industry since Tuesday. Even though the technology is constantly evolving, the costs have not been halved as the reward, the resale price on the market must therefore be kept high to perpetuate the function of the minor.

If the BTC were to drop again to $ 5K, the consequences would be very complicated this time.

For the moment, everything is fine, the mining can breathe. The price of Bitcoin rebounded perfectly on the major support at $ 8,500, the scope of which was described in my previous technical posts. But this rebound did not erase the huge problem of extreme resistance at $ 10,000 / $ 10,500, a long-term technical obstacle.

This resistance is a sword of Damocles for the entire sector, without a frank upward technical break, there will always be an underlying stress. The next monthly close is in two weeks and will be crucial. The facts are there and only the facts count: at the current stage, the market is neutral between $ 8,500 and $ 10K. A resistance overshoot during the close (at least in weekly data) opens the way to $ 14K. The break of $ 8,500 returns us to $ 7K, a new critical technical threshold.

Finally on the altcoins side, I appreciate the rebound of Ethereum on the support at $ 190 and I aim for the $ 220. ETH and BTC lead the dance together, their technical analysis is a good precursor barometer for other cryptocurrencies.

ETHEREUM – daily chart of ETH / USD with TradingView

Follow Vincent Ganne on Trading View for further analysis on the financial markets. The technical thresholds and the trend indicated above are based on the technical approach "price, momentum, sentiment, ichimoku". The data come from Bitstamp and the graphics of TradingView.

This content is offered for informational purposes only and does not constitute an investment recommendation. We remind you that theinvestment in crypto assets, including Bitcoin, is extremely risky. Cryptocurrency prices are prone to large and unpredictable price swings.