Is Bitcoin Facing Strong Resistance At $10,500?
Article Published by: forbes.com
Bitcoin prices have been trading mostly between $10,000 and $10,500 over the last week, fluctuating within a relatively modest range.
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, CoinDesk data shows.
As the digital currency consolidates, is it encountering significant resistance near the $10,500 level?
According to several market observers, it is.
“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,” said Kiana Danial, CEO of Invest Diva.
“This level also falls on the lower band of the Ichimoku cloud on the 4-hour chart,” she noted.
“In fact, the Ichimoku cloud is acting as a wide resistance layer, however, the Kijun line (the fast Ichimoku moving average) has crossed above the Tenkan line (the slow Ichimoku moving average) indicating the bullish momentum may be stronger.”
“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, director of institutional research for TradeBlock, also weighed in.
“Yes, we are facing resistance at $10,500,” he stated, adding that “$12,000 has proven to be a difficult ceiling to break through.”
“If we decline lower from here, we should see support around $9,700 which is the EMA200,” said Todaro.
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, provided further technical analysis.
“Yes, Bitcoin is consolidating in this range for now with support at $10K and resistance at $10.5K,” he stated.
“If it continues like this without dropping below $10K we may see a retest of $11K in the coming days. However, if it drops, then $9,800 is the immediate support followed by $9,500,” said DiPasquale.
Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet, offered a differing perspective from the aforementioned analysts.
For starters, he disagreed with the assertion that bitcoin is facing strong resistance at $10,500.
“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,” said Garcon.
“There are a lot of longs with stop losses below the $10,000 level, so we could very well see market makers flush the price to liquidate those positions before taking the price higher. There’s a good possibility of that happening.”
About Jaime Bonetti Zeller
Jaime Bonetti Zeller is an investment professional and entrepreneur with businesses in multiple industries. He is president of Servicios Consulares Eurodom, the local partner in the Caribbean region for VFS Global, a leader global outsourcing and technology services specialist for diplomatic missions and governments worldwide. Jaime Bonetti Zeller also started the company Sofratesa de Panama inc., an organization in the engineering services industry located in Panama City.