After hanging by a thread above $10,000 for most of the day yesterday, Bitcoin’s bulls stepped up and sent the cryptocurrency surging to highs of over $10,500. Although this rally did spark excitement amongst BTC investors, the move ultimately proved to be somewhat fleeting.
Analysts are now noting that $10,900 is a key region of resistance that must be broken above in the near-term, or else BTC’s latest movement upwards may mark a “dead cat bounce” that will be closely followed by an extension of its recently incurred downwards momentum.
Bitcoin Surges to $10,500 Before Retracing Slightly
At the time of writing, Bitcoin is trading up 2.5% at its of $10,350, which marks a retrace from its 24-hour highs of over $10,500 that were set yesterday.
Although this movement did prove that $10,000 remains a strong level of support for the cryptocurrency, a failure for the crypto’s buyers to maintain its newfound upwards momentum may signal that further losses are imminent.
In the near-term, analysts are now noting that $10,900 is a key region of resistance that must be broken above, or else this latest price surge may simply be a dead cat bounce that is followed by a drop below $10,000.
Luke Martin, a popular cryptocurrency analyst on Twitter, spoke about the key price levels he is watching in a recent tweet, explaining that $10,900 is the price that BTC must break above in the near-future for an uptrend to begin.
“Did not expect price to jump $600, an hour after saying this. Nothing special about wanting to be long by support. @CryptoCred chart yesterday explained it clearly. Still like long vs short exposure. The higher conviction, slower moving confirmation is $BTC above 10.9k zone,” he explained while pointing to the below chart.
Did not expect price to jump $600, an hour after saying this. Nothing special about wanting to be long by support. chart yesterday explained it clearly.
Still like long vs short exposure.
The higher conviction, slower moving confirmation is above 10.9k zone.
— Luke Martin (@VentureCoinist)
Researcher: Data Suggests BTC Has Yet to Reach a Top During Recent Uptrend
In the short-term it may remain unclear as to whether or not Bitcoin will move higher or face continued downwards pressure, but the Senior Quantitative Analyst at the Ikigai Fund explained in a recent tweet that one data point suggests that BTC has yet to set a top for its recent uptrend.
“Bitcoin bubble tops are clearly identified with a dark red cluster of Adjusted Binary BDD. Until that happens, we’re not at the top. Public opinion is key here because that red cluster is caused by the assumption of the crowd and is self-fulfilling (reflexivity),” he explained while referring to the chart seen below.
//twitter.com/hansthered/status/78937344
It is highly probable that the coming days and weeks will elucidate whether or not Bitcoin is ready to reverse its recent downtrend and climb higher, or if it will once again visit the four-figure price region and continue to consolidate.
Featured image from Shutterstock.