Bitcoin tests the resistance of $ 10,000. After rising consistently for almost 2 weeks, Bitcoin is now heading towards $ 10,000. Even though in the future, it might reach about $ 10,000 for sure but currently, 10,000 seem like a big resistance for Bitcoin.
Trading about $ 9000 convincingly:
In the last 48 hours, Bitcoin tried to not only overcome $ 9000 but currently is trading about at $ 9000 consistently.
As compared to the recent lows which were created by Bitcoin of around $ 7500, it is currently trading at least 30% above those lows. This rise has been a witness just in a period of 2 weeks. This is the reason why many traders are thinking that the movement is back with Bitcoin.
The problem is that $ 10,000 is not just a resistance on the charts but it is also a psychological resistance as well. This is the reason why in order to clear this resistance, high momentum will be needed. Currently, most of the traders, as well as investors, think that Bitcoin will be stopping for a couple of weeks and thereafter breaking the resistance of $ 10,000. Many traders also expect Bitcoin to come down briefly in order to consolidate its position. Most of the traders think that only after a couple of weeks, it will be able to cross $ 10,000 convincingly and go higher.
Similarly, when you look at the other cryptocurrencies, they have also been relentlessly going up from the recent lows. Most of them are up by at least 30% to 40% from the recent lows. That is why chances are pretty high that consolidation might be needed in the cryptocurrency space. Also, with the countries around the world making cryptocurrency trading and investing more and more transparent and difficult for the ordinary person, the movement might not just be there. This is the reason why many investors think that there will be a consolidation phase in between.
If indeed, Bitcoin is able to cross $ 10,000 in the next 48 hours or so, you can be sure that the movement will take it even higher. However, it looks unlikely that the current rally seems to be stalling. It will be a good idea to be patient for a few weeks and thereafter, the rally will resume once again in not only Bitcoin but also in other cryptocurrencies as well. Till then, however, it will be a good idea for the investors to keep holding their positions. The short sell which might come in between might be too unpredictable to make any gains.