The bitcoin price has stabilized somewhat over the past few days, but it looks like in many ways, the world’s number one digital asset by market cap is still enduring a struggle.
Bitcoin Has to Reach the Five-Figure Range
This seems to be the sentiment of most crypto analysts, who claim that $10K appears to be one of the biggest hurdles for the coin. The mark is proving to be a heavy resistance point for the currency, as the asset initially rose above this mark about 72 hours ago only to fall back below it into the mid-$9,000 range in what felt like just a few seconds later.
At the time of writing, bitcoin has fallen to about $9,667 – about $100 less than where it stood just yesterday.
While it seems that bitcoin has no intention of dropping from where it stands now, it must at least reach $10K again if any bullish momentum is to occur within the currency’s space. Kiana Danial – the CEO of Invest Diva – explained the matter during an interview, stating:
The $10K level have become even stronger than before after being tested three times over the past month… The next long-term resistance levels will be at the 50 percent, 61 percent and 78 percent Fibonacci retracement levels that trace the crash of bitcoin from the highs of almost $20K back in December 2017 to the lows of $3K at the end of 2018. The price levels are at $11,400, $13,375 and $16K, respectively… A break below $8,600 could open doors for another pullback towards $7,700 and $7,000 based on Fibonacci retracement studies.
Joe DiPasquale – the CEO of hedge fund manager Bit Bull Capital – offered similar sentiment. He cited the $10K mark as a point of “major resistance” for bitcoin, and followed this statement with:
Bitcoin needs to cross $10,500 and then form a support at that level to firmly establish itself in the five-figure price range.
Of course, this is easier said than done considering bitcoin has only ever jumped beyond that point twice in its short life, and each time the spike lasted only a few months at best. The first was in December of 2017 when the asset reached its all-time high of nearly $20,000. However, by the time February of the following year rolled along, the currency had dropped back into the $9,000 range, losing more than half its value in only two measly months.
This Hasn’t Worked in the Past
The second time occurred in July of last year. Sadly, this bull run lasted for around the same period, with the currency falling below $10K by the time September rolled around thanks to the disappointing debut of Bakkt, the ICE-governed crypto trading platform designed for institutional players.
From there, the currency didn’t reach $10K again until February of this year – a move that didn’t last thanks to the hold of the coronavirus.