Bitcoin Sets Sights Above $10K After Bull Breakout

Following a bull breakout last night, bitcoin looks set to test $10,000 and could possibly move higher over the weekend.

Bitcoin closed yesterday at $9,759 on Bitfinex - the highest daily close since March 7 - signaling the upside break of the week-long narrowing price range we've been anticipating.

At time of writing, BTC is changing hands at $9,776 and remains on the hunt for a big break above the $10,000 mark, as indicated by the bullish setup in the technical charts below.

The chart above shows a pennant breakout, indicating that the rally from April lows below $6,500 has resumed.

The 4-hour relative strength index is close to moving above 70.00, signaling overbought conditions.

Last but not the least, BTC's bullish breakout yesterday was backed by a 35 percent rise in trading volumes, according to CoinMarketCap.

A high volume breakout only validates the argument that the rally has legs.

A close above that level would strengthen the bull grip and could yield a sustained rally to $10,455 and above.

The outlook remains bullish as long as prices hold above the ascending 10-day MA, located at $9,290.

An unexpected close below $8,652 would signal a short-term bullish-to-bearish trend change.