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After hovering beneath the key resistance that previously existed at $10,000, Bitcoin’s bulls were able to propel the cryptocurrency past this level, subsequently catalyzing intense upwards momentum that has allowed BTC to move into the $10,100 region.
This rally has marked a massive extension of the momentum that the crypto has seen throughout 2020, with this uptrend allowing it to form an incredibly bullish market structure.
Now, analysts are noting that Bitcoin is on the cusp of seeing significantly further upside, as history shows that movements above $10,000 are typically followed by gains ranging between 14% and 100%.
Bitcoin’s Break Above $10,000 Suggests Further Momentum is Imminent
At the time of writing, Bitcoin is trading up 2% at its current price of just over $10,100, which marks a notable climb from daily lows of $9,700 that were set last night.
It is important to note that buyer’s ability to absorb the intense selling pressure that bears attempted to catalyze during this selloff was a bullish sign, with the underlying strength elucidated by the defense of this level being further confirmed when the crypto pushed past $9,800.
One factor that should be considered in the near-term is that Bitcoin’s rallies historically don’t end at $10,000, with all breaches of this level leading to upside extensions that have been as large as 100%.
Hsaka, a prominent cryptocurrency analyst on Twitter, spoke about this in a recent tweet, pointing to a chart showing that BTC’s breaks above $10,000 over the past few years have led to further rallies of 99%, 14%, and 26% respectively.
“BTC breaks $10,000. Prior instances of breaking it after a substantial retrace,” he noted.
$BTC breaks $10,000.
Prior instances of breaking it after a substantial retrace. pic.twitter.com/M3vloBouYj
— Hsaka (@HsakaTrades) February 9, 2020
BTC is About to Post a Highly Bullish Weekly Close
One other factor that could allow the cryptocurrency to continue climbing higher in the near-term is the fact that it is about to post a highly bullish weekly close, but it is imperative that bulls hold the crypto above $9,556 before tomorrow’s close.
Josh Rager, a prominent cryptocurrency analyst on Twitter, spoke about the importance of this level in a recent tweet, explaining that Bitcoin will still be bullish even if it sees a slight decline from its current levels.
“Regardless if BTC experiences a pullback after hitting $10k a weekly close above $9556 would be absolutely bullish,” Rager noted.
Regardless if $BTC experiences a pullback after hitting $10k
A weekly close above $9556 would be absolutely bullish pic.twitter.com/dK5fc9v6aP
— Josh Rager ? (@Josh_Rager) February 9, 2020
One certainty in the near-term is that Bitcoin’s recent break above $10,000 will lead to some extreme volatility, with historical precedent and the crypto’s current market structure both suggesting that this volatility will overwhelmingly favor BTC buyers.
Featured image from Shutterstock.
