Bitcoin prices have been making headlines lately, surpassing $10,000 over the weekend and then falling back below this key, psychological level early today.
Since then, the cryptocurrency has been trading mostly between $9,800 and $10,000, additional CoinDesk figures reveal.
When explaining these latest price movements, market observers pointed largely to technical factors.
“The recent rally had also entered into the overbought zone, exhausting bulls and resulting in the current decline,” said Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital.
Now, the digital currency is trying to “establish a support level in the zone between $9,800 and $10,000,” he stated.
Going forward, “we can expect some consolidation in the current range before technical indicators cool down and Bitcoin makes another move above $10,000,” added DiPasquale.
Jon Pearlstone, the publisher of the newsletter CryptoPatterns, also weighed in.
“Studying the daily chart since the most recent lows in December 2019 shows a continued grinding up pattern, and this continues around the $9500-$10500 range,” he stated.
“There are bullish signs here but for now we are testing this key price range that has been hit multiple times over the last 18 months,” said Pearlstone.
“Our pattern analysis indicates 2 months of grinding higher is a sign of a growing trading market with a bullish edge (currently) that means a lot more than the psychological price level of $10000,” he stated.
Kiana Danial, CEO of Invest Diva, also commented on this bullish trend.
“Bitcoin has entered a long-term uptrend, however, unlike the bubble of 2017, this time around its gains are more measured,” she stated.
“That means, instead of just moving up out of hype, short-term investors take the time to take profit and get back in for more,” said Danial.
“This time around we could see drops to as low as $9,500 or even $9,000 before we see the next move towards $11,000,” she noted.
“This is a much healthier long-term uptrend for Bitcoin, which could sustain a lot longer and prevent a catastrophic crash.”
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