As Bitcoin Consolidates, Here are the Crucial Levels that Will Determine Its Future
- Bitcoin has seen a strong rebound from its recent lows, but the cryptocurrency still remains caught within a firm consolidation phase between $9,900 and $10,300
- The benchmark crypto is currently testing the upper boundary of this range, but its momentum is somewhat tempered at the moment and appears to be faltering
- Whether or not it can push any higher in the near-term may depend almost entirely on how it reacts to $10,300
- One analyst is noting that a firm break above this level could be all that is needed for the crypto to see a strong push back up towards $11,000
Bitcoin is showing some signs of strength today, as it was able to avoid a plunge on a rocky open to the stock market futures yesterday afternoon, only declining as low as $9,950 before rebounding to $10,100.
In the time since, futures were able to rebound and allow the equities market to see a strong open, which in turn provided Bitcoin with a much-needed boost.
It is important to note that BTC has yet to break above the key near-term resistance that may be suppressing its price action.
One analyst is setting his sights on $10,300, noting that a clean break above this level could spark a move up towards $11,000.
Bitcoin Shows Signs of Strength Following Rocky Afternoon Yesterday
At the time of writing, Bitcoin is trading up just under 1% at its current price of $10,220, which is around the price at which it has been trading throughout the past few days.
Yesterday afternoon, however, bears attempted to thwart this stability when they pushed the crypto down to lows of $9,950, with this drop coming about in tandem with a bloody open to the stock market futures.
Bulls held strong, however, and the ongoing rebound that the stock market is seeing has provided BTC with some momentum.
Analyst: BTC May Rocket Towards $11,000 if It Can Hold One Key Level
One analyst explained that breaking and holding above $10,300 could be all that Bitcoin needs to start rallying towards $11,000. He also notes that $10,000 is the key support it must continue defending.
“Still holding between two crucial levels here. Support at $10,000 is holding, while a breakthrough of $10,225-10,300 could trigger a continuation towards $10,600 and possibly $10,800-11,000,” he explained.
Image Courtesy of Crypto Michael. Chart via TradingView.
Because Bitcoin has already tested this resistance on a couple of occasions throughout the morning, it should soon grow clear as to whether or not it will hold strong.
Featured image from Unsplash. Charts from TradingView.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Cole Petersen, @Khareem Sudlow