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Bitcoin once again attempted to surmount the $10,000 region earlier today, although this move proved to be futile as the cryptocurrency once again faced a harsh rejection.
BTC now appears to have fallen into the same trading range that has held strong throughout the past week. As its buyers and sellers reach an impasse, how it responds to this trading range could have major implications for which direction it trends next.
Analysts are now widely noting that the cryptocurrency could be well-positioned to rally higher in the days and weeks ahead as it continues trading above a key support level.
This potential upswing could lead it to fresh year-to-date highs around $11,000, although there is a key level that must first be surmounted.
Bitcoin Continues Consolidating as Attempted Uptrend is Halted by BitMEX Outage
At the time of writing, Bitcoin is trading down marginally at its current price of $9,700. This is around the level that it has been trading at throughout the past several days.
The cryptocurrency did attempt to rally up to $10,000 overnight, although this upswing was stopped short by an outage on crypto trading platform BitMEX. This outage scared investors and quickly led BTC back into its tight trading range between roughly $9,500 and $9,800.
In order for this consolidation phase to result in a bull-favoring breakout, it is imperative that the cryptocurrency pushes up past $10,000.
The psychological importance of this price region makes it a heavy resistance level, as each break above it seen throughout the past few years has proven to be short-lived.
It is possible that growing fundamental strength stemming from Bitcoin’s recent block rewards halving and increased rates of accumulation from investors will help boost the crypto higher.
Mohit Sorout – a founding partner at Bitazu Capital – explained that BTC could be poised to “teleport” to $11,000. The chart he references shows that the crypto posted a potent response to its $9,200 support and is now testing a key trendline.
“It’s almost as if BTC wants to get teleported to $11k,” he noted.
BTC Remains Strong as Long as It Hovers Above $9,550
Another well-respected cryptocurrency analyst explained in a recent tweet that he is growing increasingly bullish on Bitcoin as it hovers above $9,550.
He asserts that in order for the cryptocurrency to enter full bull territory, it needs to break above $10,300.
“Nice close by Bitcoin, bounced off support and holding $9550s on higher time frames. For me to feel bullish, want to see a break and close above $10300s from here. Break support at $9150 and we had back down to mid $8ks,” he explained.
Whether or not the crypto is able to break into the five-figure price region will be largely dependent on how its current bout of sideways trading resolves.
Featured image from Unsplash.
