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After surging past $10,000 yesterday, Bitcoin (BTC) has been able to further extend its upwards momentum and is now nearing its next key resistance level that lies within the upper-$10,000 region.
Bitcoin’s recent surge has drastically altered the overall market sentiment for the better, but some analysts are expressing caution and are noting that it may still drop significantly lower before its next parabolic trend begins.
Bitcoin Surges Past $10,600 as Buyers Build Strength
At the time of writing, Bitcoin is trading up over 6% at its current price of $10,630, which marks a massive rise from its daily lows of roughly $10,000.
This surge marks an even greater climb from BTC’s recent lows of nearly $9,400 that were set during a bout of significant downwards pressure in August.
The price rise incurred by the cryptocurrency over the past couple of days has led many investors and analysts alike to believe that it is entering its next parabolic phase that sends it back to its 2019 highs around $13,800, but it is important to note that some analysts believe it will drop further before this happens.
Mitoshi Kaku, a popular crypto analyst on Twitter, explained in a recent tweet that he believes BTC will face a pullback in the near-future, as it is currently pushing up against strong resistance. He further added that only a break above $11,000 will invalidate this bearish outlook.
“I think this should be self-explanatory, other than 180 Gann resistance, bla, bla. I even left the ugly 1D Ichimoku out of it. Next 1D Pivot 9/5 – Invalidated with a close above $11K,” he noted.
I think this should be self-explanatory, other than 180 Gann resistance, bla, bla I even left the ugly 1D Ichimoku out of it. Next 1D Pivot 9/5 🤓 – Invalidated with a close above $11K. #Gann $BTC #CryptoIkagi pic.twitter.com/uPu85RRz34
— Joe Mitoshi 🧑🚀 (@CryptoSays) September 3, 2019
Could BTC Retrace as Far as $6,000 in Near Future?
Kaku is not the only one that is bearish on Bitcoin presently, as Johnny Moe, another popular analyst, explained in a recent tweet that he believes the crypto may need to retrace towards $6,000 before climbing higher – which is where its parabolic trend line currently exists.
“Update: Still anticipating return to the parabolic trend. Previously had ~$5,500 on this chart, assuming a quicker return to mean. Since we’ve consolidated sideways for about 2 months, downside is more like $6,000 now,” he noted while pointing to the below chart.
Update: Still anticipating return to the parabolic trend. Previously had ~$5,500 on this chart, assuming a quicker return to mean. Since we've consolidated sideways for about 2 months, downside is more like $6,000 now. $BTC https://t.co/E56TWROaCD pic.twitter.com/alu5Sn8RL6
— Jonny Moe (@JonnyMoeTrades) September 3, 2019
As Bitcoin continues to react to its newfound position in the upper-$10,000 region, it is highly probable that analysts and investors alike will soon gain greater insight into whether or not it is ready to surge higher, or if it will face further capitulation in the coming weeks and months.
Featured image from Shutterstock.
