Bitcoin trading indicator turning bullish affirming chance to rally to $9,800

Bitcoin remains on the cusp of surging to $9,800 or dropping to $6,500 as one technical index turns bullish.

Following a 19 percent drop to $7,730 on Sept. 30, Bitcoin seems to have found support around the 100-week moving average.

Breaking through it could create panic among investors, increasing the selling pressure behind BTC. A move below the 100-week MA could actually expand into another 20 to 40 percent correction, which would allow Bitcoin to test the 150 or 200-week MA for support.

A spike in volume could trigger a bullish impulse that lets Bitcoin gain the 50 percent Fibonacci retracement level as support.

A similar outlook is presented on BTC's 12-hour chart where the TD sequential indicator estimates that a bullish impulse is probably underway.

Since BTC has been consolidating between $8,500 and $7,800 for over two weeks, a move above this trading range will add credibility to the bullish outlook.

Bitcoin could then surge to the next resistance area between $9,500 and $9,800.

A spike in sell orders that takes BTC to break below support could ignite a steep decline to around $6,900 and $6,500.

At the moment, Bitcoin is trading within a no-trade zone between $8,500 and $7,800.

Even though the TD sequential indicator is presenting bullish signals on different timeframes, breaking outside of this trading range will confirm where BTC is heading next.