Bitcoin is back above $10K. This historic position has been a determinant of investors’ view, bearish, or bullish. Below this has generally been viewed as bearish but yet an opportunity to accumulate. And for the last few months, the bulls have done exactly this.
Week after week, data has shown that investors were moving more Bitcoin out of exchanges than they were putting in. As a result, the number of holders and the amount of stake has been on record highs.
During the weekend, all this surmounted to Bitcoin going back above $10K. It is still unstable with a move above $10.5K still needed to confirm the $10K position as the lower support. Bulls are aware that $10.5K will bring strong resistance especially as sell orders increase.
After Bitcoin climbed above $10K, it briefly dipped below this as sell-orders flooded the market with short term holders cashing in. This same scenario is expected when Bitcoin hits $10.5K.
If this is broken, most analysts expect that the next major position is $12K. This suggests that the $11K range will be a cruise one dictated by a lot of buying as investors go into full FOMO mode.
If the upward trajectory proves unsustainable, what can traders expect on the downside?
Forget $6K Bitcoin Says Analyst
Well, popular analyst PlanB says that using the 200WMA it is clear that Bitcoin will ever go back to $6,000. This indicator has never failed and investors are hoping that it will not start now.
PlanB was particularly talking to the investors who are still waiting for such a dip to buy more. This prediction is further also by miners’ interest. At that price and given we just went through a third halving, they would not be profitable. Arguably, this results in holding and driving demand and prices up.
And on halving, this is the 12th week since the event, in the 2nd halving, this week is when its effect on price was recorded. Are we seeing the same now?
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