Bitcoin bounced sharply from the $8,100 level last week, as dip-buyers remained in control of the number one cryptocurrency.
Bitcoin price chart analysis shows that bulls need to anchor the price above the $10,000 level to encourage the next strong rally.
Bitcoin medium-term price trend
Bitcoin staged a strong rally after the much-anticipated halving event finished last week, with dip-buyers showing crypto traders that they remain in control of the short and medium-term.
The recent rally towards the $10,000 level also closed a notable price gap on the CME futures chart that was created during the May 9 flash crash.
Bitcoin price technical analysis shows that bulls need to anchor the price above the $10,000 level to encourage the next major rally towards the $11,000 level.
The daily time shows that if the BTC/USD pair can break above the current monthly high then bulls may start to attack towards the $10,500 and $11,000 resistance zones.
If bulls can move price above the $10,500 level then the upside momentum could increase significantly, and force a breakout rally towards the $11,000 level, and possibly the $11,600 level.
Bitcoin short-term price trend
Bitcoin price technical analysis shows that bulls remain in control while price trades above the $8,100 level.
Lower time frame analysis shows that a large head and shoulders pattern remains valid while the price trades below the $10,070 level.
Bears need to move price below the $8,500 level to trigger the bearish pattern, which holds $1,500 of downside potential.
If the pattern is invalidated then technicals indicate that price could rally towards the $11,500 level.
It is also noteworthy that bearish stochastic divergence is still in place on the four-hour time frame, and is currently located around the $6,900 level.
Bitcoin technical summary
Bitcoin price chart technical analysis indicates that the cryptocurrency needs to stabilize above the psychological $10,000 level to encourage the next round of strong technical buying.
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