Bitcoin: technical objective of 10K $ reached! Well… what now?

The bullish chartist target of $ 10K has been reached and logical profit taking is taking place. The rest will depend on the IT process of the halving and institutional traders.

Key technical factors of the article:

• Goal achieved ! The technical target of $ 10K defended on Cryptaut was joined as planned upstream of the halving.
• The $ 10K is much more than a round number. Beyond the psychological barrier, it is a long-term pivotal threshold (several months / years) according to the technical analysis of the financial markets.

"Buy the rumor, sell the news", a stock adage as famous as the "Sell In May And Go Away". In my previous analyzes, I tried to demonstrate that all the barometers were green for an increase in the price of Bitcoin to $ 10,000 upstream of the third halving in the history of BTC, it is done. For 7 weeks, the market has been buying the prospect of this major fundamental event for the BTC mining industry, should we now sell the new one?

From a long-term perspective, the halving of the mining premium has contributed to the rise in the price of BTC on the market, it is the teaching of the precedents of 2012 and 2016. This makes little occurrence for a relevant conclusion, but in any case it is not a factor of decline, to say the least . The beginning of next week is crucial, it is necessary that the halving computer process goes well, that the mining activity is not disturbed.

The technical reading of the BTC was therefore correct, the signals given for several weeks defended an increase towards $ 8,500 and $ 10,000. All targets have been met and in the short term, small logical profit taking is taking place, especially since the weekly closing of the future contract takes place this evening. The first short-term graphics support is at $ 9,500.

But what does this $ 10,000 represent? First of all, it is a round number, a "psychological" threshold. More concretely, it is also an exercise price on the options market, certainly still limited on the BTC market but in strong development. According to the prism of the technical analysis of financial markets, it is mainly a question of long-term resistance noted by several methodological approaches.

In my personal approach, the $ 10K is a Chartist resistance and an obstacle of the ichimoku system on the long term chart, the one which exposes the price data in monthly periodicity.

The $ 10,000 produced its downward effect last February, we are now going to witness a new attempt to exceed it, the key lies in the institutional volume. At the time, the latter was not there and the short positions dominated the long positions. The volume structure is different this May and its absolute value has increased for 2/3 weeks.

This May will therefore condition the dynamics of BTC for the summer. A bullish technical break of $ 10K / 10.5K would signal an increase to last year's records but it has not been done. Beware of an overly consensual scenario of an immediate upward flight. Factually, I keep my positive opinion above the first major support, the $ 8,500.

Very long term graph of BTC with logarithmic scale

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 provided 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.