An analyst claim it’s clear skies for bitcoin above this level. Is it possible? There are several factors to consider. Because of the consolidation phase Bitcoin has witnessed, the confidence of the investors about the strength of its uptrend decreases.
Crypto’s 150% soar from its March lows has been remarkable. Nonetheless, this momentum stopped as soon as it reached the five-figure price region.
Bitcoin has now posted two rejections at $10,500 after its rebound from $3,800. It has also posted numerous other rejections at $10,000 in the time since.
This has done little to support its market structure. On the contrary, it has caused many investors to worry that it is in the process of forming yet another lower-high.
On the other hand, analysts and experts note that it is essentially clear skies ahead for Bitcoin once it is able to break above $10,400. Fundamental data about the strength of Bitcoin’s investor base support its ability to negate recent bearishness. The data further says it can push higher in the coming days and weeks.
Bitcoin Looms Below Key Resistance, Though It’s “Thin Air” Above
The current technical weakness by Bitcoin seems to be rooted in the recent rejection at $10,050. It lost its momentum and found itself within a downtrend which led it to $9,000, after tapping these highs.
Bitcoin has some strong support between $8,600 and $9,000. Regardless, each rejection seems to cause it to enter consolidation channels that are closer to its range-low support. This seems to be a dark sign for its near-term outlook. It’s still unclear as to what could cause it to see any major upside.
One factor that still gives ignites for bulls is the fact that it’s essentially “thin air” above $10,400. It means that there isn’t any heavy resistance above this level until significantly higher.
Mohit Sorout, a founding partner at Bitazu Capital and a respected analyst remarks:
Bitcoin Shows Signs of Fundamental Strength
Bitcoin’s fundamental strength may also be one reason that supports it to go higher in the near-term.
Alistair Milne, the CIO at the Altana Digital Currency Fund, commented about the amount of Bitcoin being held by investors over an extended period of time. He explained that it is on par with the one seen in 2015-2016.
Alistair Milne’s thoughts on the amount of Bitcoin held by investors.
Will history repeat itself? If it would, this could signal a major upside is imminent in the near future. It could mean clear skies for Bitcoin.