Trade idea of the day: Bitcoin to test $10,000?

In true Bitcoin style, the volatility keeps on coming. Just a few weeks ago were considering whether Bitcoin was going to make another attempt on a low of $5996 and now $10,000 looks like potential target.

What: 

In true Bitcoin style, the volatility keeps on coming. Just a few weeks ago were considering whether Bitcoin was going to make another attempt on a low of $5996 and now $10,000 looks like potential target. Bitcoin has rallied over 60% since that February low, as investors have started to interpret the looming clamp down by authorities as some thing positive. 

Previously concerns were that higher regulation would cause a loss of interest in the crypto currency. However, the great regulation is now being seen as a necessity in a maturing market, something that will help attract more investors, creating higher demand. Increased regulation is possibly the only way to attract more mainstream investors. 

How: 

Bitcoin is trading at a two-week high, as it up almost 5% on the day and 12% over the past 24 hours, after convincingly breaking through $9000 in the previous session. 

This is relevant because this is a break above the top of the most recent downtrend channel. Moreover, the 5-day sma and the 10-day sma are indicating a bullish rise, and the RSI is also pointing to a continued rally, meaning the price of bitcoin is poised to push on to $10,000, which could even extend to $11,000. However, sustainable gains at these levels are questionable given the weekly chart 5-week sma and 10-week sma pointing to the bears being in control. 

Resistance can be seen around $11,000, which has been a support and resistance level in December and again in January. A final point to keep in mind is the lower volumes with which Bitcoin is trading. Bitcoin will be looking to target 10,000 with trading volumes just over 50,000 BTC, relatively light compared to volumes of just over 270,000 on 7th February.

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