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Bitcoin Reaches $10K Milestone
- For the first time in 2020, the “king of cryptocurrency” has finally crossed the 10K mark.
- The importance of buyers in the crypto space
The “king of cryptocurrency” has finally crossed the 10K mark for the first time in 2020, attracting buyers’ interest in investing in such an asset. But later, at the start of the second week of February, it managed to retrace from its recent gains. Strong resistance was found around $10,147.69. The bulls lost steam and then started to plummet to make a corrective move in favor of the bullish bias.
Bitcoin seems to be looking for the 50 SMA during the decline, due to current selling pressure. A bullish channel is also being followed by the bulls. The lows from 2020 acted as a projection zone and are setting the path for the cryptocurrency across the board. Also, the 200 SMA is providing another dynamic support to give impetus to the buyers during the declines.
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Buyers are dominating the crypto space
It should be noted that cryptos have been gathering the key players’ interest in the financial markets, and the optimism around the crypto sphere is helping to boost the demand on the BTC/USD pair and other altcoins. That’s why further rallies are expected to the upside, with a strong resistance that lies at $10,147, acting as a key barrier to cap gains. If it gives up, then a leg higher is likely to be posted towards the $10,400 handle. Once that level is cleared out by the buyers, eyes will be on the higher band of the aforementioned channel in the H4 chart.
A leg lower is likely to happen
To the downside, Bitcoin could extend its retracement toward the 200 SMA. If a breakout happens below there, a possible decline could happen to reach the $8,303.70 level.
Such an area guards the round-figure level of $8,000 ahead of the next tough nut to crack around $7,700.86.Technical oscillators are showing mixed readings, with the RSI indicator staying slightly below 50, while Momentum is turning flat.
*OspreyFX would like to state that traders should research extensively before following any information given hereby. Please read our Risk Disclosure for more information.