Bitcoin’s price crossed above $10,200 a few minutes ago and rose as high as $10,400 on Coinbase, the highest level since October 26.
The digital currency turned higher from near $9,700 – the support of the 4H ascending trendline – as detailed earlier today.
The sharp rise from $9,700 to $10,300 has recovered Monday’s price slide. If prices manage to close above $10,200 (Monday’s high) today, the bullish trend from January lows will be reinforced and more buyers may enter the market, sending prices well above $10,500.
However, if the daily candle ends with a long upper shadow, marking a failure to keep gains above Monday’s high, then a deeper price drop may unfold over the next few days.
From trading perspective, long exposure could be boosted following a daily close above $10,200.
On the flip side, traders can take profits on longs if the cryptocurrency falls back below $10,000 in the next few hours.