Bitcoin’s price reaches an impasse as its future hangs in the balance
Bitcoin crossed $10,000 on 9 February after spending a significant amount of time below the psychological resistance level. This was a crucial development as the coin had gone under $10,000 on 23 September 2019, following which the rally turned bearish until the end of the year.
Since 2020 dawned, however, the king coin has been able to take advantage of bullish momentum and Bitcoin has since consolidated above the $10,000 range over the past 5 days. The present scenario opens a ‘two-way’ situation for the world’s largest cryptocurrency.
Bitcoin is yet to register a correction period over the last two weeks, something that could be detrimental for its valuation in the long-term. However, Bitcoin’s price movement over the next week may just determine its future movement.
From the chart above, it can be seen that Bitcoin’s present price consolidation is its first in 2020. Consolidation of price may fail to indicate a necessary movement in either direction over a period of time, but the current bullish momentum could possibly turn the resistance at $10,265 to its next immediate support. In that case, a surge up to to $10,700 could be on the cards for Bitcoin over the next few weeks.
Depending on Bitcoin’s apparent bullish rally, a spike up to $11,500 cannot be counted out as well. The completion of the imminent golden cross may drive its price up to that range and the possibility of another ATH would receive another boost.
Making a case for the pullback, an immediate slump may see the coin dip down to $9300, a level where strong trading volume has been observed over the past six months.
Noted trader and crypto-analyst Josh Rager identified similar patterns in the chart. However, he believes that the chances of correction are low. He stated,
“Break under $10,100 & $9,300 is a potential target after a couple bounces in-between but Not worried about lower at the moment.”
The ball is in Bitcoin’s court at the moment and over the next 7-10 days, a clearer picture may come to view from a bull-run perspective.