If you’re a Bitcoin (BTC) owner, you may have been disappointed to see it fail to stay across the $12,000 mark, and it has dropped to hover between $10,000 and $10,500 during the past week.
As Charles Bovaird says in one of his most recent posts about the Bitcoin price, “In this time, the digital currency has failed to reach $10,500, and while it has fallen below $10,000, it has failed to stay below this level for long.”
So, what does Bovaird make of what is happening, and I should say that I follow his analysis of this market, because it has always proved to offer balanced information.
What Bovaird asks is this: is BTC encountering “significant resistance” at $10,500?
According to those he interviewed, the answer to that is yes. Why is it happening?
In the opinion of Kiana Danial, CEO of Invest Diva, “Bitcoin has found a short-term resistance at $10,500 which has acted as resistance multiple times in the past, including in June 2020, February 2020, and a number of times in 2019.” She also adds, “A break above $10,500 could open doors for further gains towards $11,150, while a break below $10,000 (the lower band of the current range) could lead to a revisit of the lows of back in July at around $9,300.”
John Todaro at TradeBlock is of a similar opinion. “Yes, we are facing resistance at $10,500,” he stated, adding, “$12,000 has proven to be a difficult ceiling to break through.”
Joe DiPasquale, CEO of cryptocurrency hedge fund BitBull, commented, “Bitcoin is consolidating in this range for now with support at $10K and resistance at $10.5K.”
He also says, that if BTC doesn’t fall beneath $10,000, then we may see a retest of $10.5k. But if it does fall, to say $9,800, then we’re likely to see $9.5k shortly after.
But not all agree that BTC is facing resistance at $10,500. Marouane Garcon, MD of crypto-to-crypto derivatives platform Amulet, said, “I would say that $10,000, which was a level of resistance, is now the support and in this obvious accumulation phase, we’re testing that support level.”
Do you have any thoughts about what might happen to the price of Bitcoin in the next few months, and what events might affect it to raise the price, or cause it to fall?