Bitcoin’s bulls are currently engaged in an intense battle to break above the heavy resistance the cryptocurrency faces at $9,500.
The selling pressure seen here has been enough to stop the benchmark digital asset from seeing any type of intense uptrend, but it still remains a possibility that this level is shattered in the near-term.
One factor that could be contributing to this volatility is BTC’s Bollinger Bands’ width recently reaching historic support. This technical trend typically occurs before the cryptocurrency makes a massive movement.
That being said, today’s climb could mark the start of this big movement, and there are several technical factors that seem to favor Bitcoin seeing further upside.
One analyst is noting that a decisive close above $9,500 on one of the crypto’s 4-hour candles could be just what is needed for it to make another bid at $10,000. How it reacts to this psychologically significant level will likely determine how it trends in the months ahead.
Bitcoin Inches Higher as Analysts Watch for It to Make a Massive Movement
At the time of writing, Bitcoin is trading up just under 1% at its current price of $9,450. This is around the price at which the cryptocurrency has been trading at since it first pushed off of its recent lows of $9,200.
How it trends from here may be largely dependent on whether or not it is able to surmount the heavy selling pressure sitting around $9,500.
It has posted some slight rejections at this level already, but it has yet to see any sharp decline as a result.
One factor to be aware of in the near-term is that a technical indicator hit a level that historically forecasts major volatility less than two days ago.
A popular pseudonymous crypto analyst spoke about this in a recent tweet, explaining that Bitcoin’s Bollinger Band’s width hitting historic support indicates that a large movement is looming on the horizon.
“BBand width is at historic support again. Something big [is] happening very soon. Place your bets,” he explained.
Image Courtesy of Byzantine General. Chart via TradingView
Here’s Why This Next Movement May Favor BTC Buyers
It is important to note that Bitcoin’s buyers may be the beneficiaries of this potentially imminent volatility.
According to a recent blog post from another respected trader, a sustained close above $9,500 on the cryptocurrency’s 4-hour candle would indicate that a movement to $10,000 is imminent.
“If we get a close above $9500 on a 4H candle then if the level seems to be holding as support throughout the daily close then I think a decent long position could be taken with pretty low risk,” he explained.
Image Courtesy of CryptoCactus. Chart via TradingView
How Bitcoin reacts to this level will determine which direction it trends in throughout the summer months.
Featured image from Shutterstock. Charts via TradingView.