• Analysts agree that Bitcoin’s price has to exceed the important level of $10,500 before going to a rally.
  • Bitcoin has failed to break this level in recent weeks, breaking it could lead to a strong upward trend. 

After weeks of stagnation, Bitcoin has showed signs of recovery and is heading towards a major resistance level. Analysts seem to agree that the cryptocurrency has to break the resistance at $10,500 before there is any talk of an upward trend. After several weeks of being rejected before going above that level, Bitcoin dropped to $8,700 on May 23 before returning to the $9,000 range again.

At the time of publication, Bitcoin stood at $9,566 and showed a slight gain of 0.64% in the last 24 hours. In the weekly and monthly charts, the cryptocurrency is showing gains of 4.19% and 10.97%

Why is $10,500 the most important level for Bitcoin?

Despite the recovery, analysts agree that Bitcoin is at a crossroad. Based on the behavior of the last few weeks, the cryptocurrency could rise or stay below $10,500. If it does so, a new rally could occur for the BTC. Fundstrat analyst Robert Sluymer had this to say about BTC price:

Next directional move on tap for BTC‘s as bull-bear convictions are about to be tested. Bears can point to the downtrend at 10-10.5K. Bulls have the long-term uptrend (200-week SMA) at their back and the past week’s resilience as BTC’s quickly rebounded from its 200-dma.

As shown in the chart below, Bitcoin has faced the $10,500 resistance in the past. In 2019, this was the level that the cryptocurrency found after the market reacted to news of a possible opening of China to cryptocurrencies. Since then, Bitcoin has failed to break the $10,500 mark.

Bitcoin BTC

Source: https://twitter.com/rsluymer/status/1260878888621744128/photo/1

The anonymous analyst “Drcoinn” confirmed on Reddit that Bitcoin’s price is at a key moment for a potential rally. Drcoinn believes that the cryptocurrency could break a 2-year symmetrical triangle and an 8-month horizontal resistance at the $10,500 level as shown in the chart below.

Bitcoin BTC

Source: https://www.reddit.com/r/Bitcoin/comments/gto3lm/could_bitcoin_break_out_broadening_wedge_this_time/

However, data from order books on the Bitfinex exchange shows that Bitcoin could face significant resistance to go above the $10,000 level. The data was shared by analyst and trader Yodaskk via Twitter. As can be seen in the chart below, there is a mass of sell orders near the $10,000 to $10,500 level that could cause the BTC price to bounce back out of that zone again.

Bitcoin BTC

Source: https://twitter.com/Yodaskk/status/1265631960635973633


Last updated on

(Excerpt) Read more Here | 2020-05-31 12:08:00
Image credit: source

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