Nick Chong · 1 week ago · 2 min read · Insights via Grayscale Investments
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Bitcoin and the aggregated crypto markets have been experiencing some intense turbulence over the past few days, with BTC’s recent drop below $10,000 halting the parabolic uptrends seen by many major altcoins.
BTC’s bulls, however, have now stepped up and propelled the cryptocurrency off of its key support within the mid-$9,000 region, with its current momentum leading many analysts to anticipate an imminent break above $10,000.
This newfound momentum may ultimately allow the cryptocurrency to set fresh year-to-date highs, but one key resistance level must be surmounted.
Bitcoin bounces from mid-$9,000 region as bulls defend against further losses
At the time of writing, Bitcoin is trading up over two percent at its current price of $9,800, which marks a notable climb from daily lows of $9,500 that were set early yesterday morning.
It is important to note that the cryptocurrency did tap $9,800 overnight before facing a firm rejection, making it unclear as to whether or not this level will be easily surmounted in the near-term.
One factor that could have driven this recent rally was the “passive absorption” of the intense selling pressure the crypto has been facing in recent times, showing that buyers are in firm control of the markets.
Cantering Clark, a prominent cryptocurrency analyst, recently spoke about this, explaining that the cryptocurrency’s reaction to this passive absorption provides insight into the fundamental factors driving this movement.
“Obvious signs of passive absorption are great for short term trades and validating a key level of support. Right away you can answer two of the most important questions. Who is in control? Who is getting off-sides? Now let’s see if it stacks up beyond just the pop.”
BTC could be on the cusp of setting fresh year-to-date highs
If Bitcoin is able to surmount the resistance it faces around its current price levels, analysts believe that the crypto could continue rallying until it reaches its 2020 highs at $10,500, with its momentum potentially allowing it to fly past this level.
HornHairs, another well-respected analyst, spoke about this in a recent tweet, explaining that this rally seems to have confirmed a bullish support/resistance flip, suggesting that a move to $10,500 is next.
“BTC update: All good so far. Daily lows swept into S/R flip. $10.5k looks to be up next.”
In the near-term, how Bitcoin reacts to the resistance at its current price levels should provide clarity into whether or not the crypto will be able to further extend its firm 2020 uptrend.