Bitcoin Rises and Falls… Again
Just yesterday, the currency spent the early morning hours meandering about the high $9,900 position. This was its highest position in a little over a week, but as we’ve seen before, $10K is proving to be yet another hardcore resistance point on the bitcoin ladder. On around June 2, bitcoin – the world’s leading cryptocurrency by market cap – did briefly rise above $10K and traded as high as $10,100. However, this only lasted a few measly hours.
The currency experienced a spike during the early morning and gained roughly $600 to do so. Many were convinced that the currency was on a seriously bullish path and that it was set to stay beyond $10K for some time, though within a very brief space, the currency saw itself lose the $600 it had gained so quickly and revert back to trading for around $9,500.
Initially, the currency began to jump yesterday following a statement from the Federal Reserve that said the organization would continue to monitor information surrounding the coronavirus and the implications it held for the economy. The statement really doesn’t say much. Basically, all it really seems to tell us is that the Fed will continue to do its job, so in a way, it makes sense that the currency’s surge didn’t amount to anything as there wasn’t much to react to.
However, there was a very brief mention of bitcoin and a question regarding whether the financial institution’s past and current communication was doing anything for the cryptocurrency’s price.
This is ultimately what got everyone talking, with analysts such as Marouane Garcon – managing director of crypto derivatives platform Amulet – saying:
I think the Fed announcement is great news for bitcoin, but it doesn’t move the needle.
Kiana Danial – CEO of Invest Diva – made an even bigger comment regarding where and how bitcoin was likely to wind up. She mentioned:
Today’s volatility may have been derived from the USD selloff after the Fed statement. Since bitcoin is traded versus the USD, a weak US dollar will push the BTC/ USD higher. If the USD selloff continues, the bitcoin bulls may finally find enough sentiment above the $10K resistance.
Where Will the Currency Turn?
Joe DiPasquale – manager of crypto hedge fund Bit Bull Capital – explained:
If the price remains in the same pattern, it is likely that we will see a break above $10,000 soon, with $10,200 serving as short-term resistance. On the downside, $9,500 is acting as reliable support.
Should bitcoin move past $10K, DiPasquale says that the next big levels of resistance will be at $11,400 and $13,500.