Bitcoin prices have been fluctuating close to $10,000, enjoying a series of higher highs. (Photo by … [+]
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Bitcoin prices have been trading close to $10,000 lately, approaching this key, psychological level but failing to break through it.
The digital currency has been reaching a series of higher highs over the last four days, CoinDesk data shows.
The cryptocurrency reached intra-day highs of $9745.17, $9856.45 and $9872.62 on February 5th, 6th and 7th, before reaching $9,889.64 around noon EST today, CoinDesk figures reveal.
While bitcoin has been gradually appreciating during this period, it has been stuck trading within a relatively narrow range.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Several analysts spoke to this situation, providing technical analysis and commenting on market dynamics.
“Bitcoin is currently in a resistance zone,” said Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital.
“The price has been trading roughly between $9,500 and $9,800” he noted, adding that $9,800 is “a resistance level Bitcoin needs to conclusively cross.”
“An attempt at $10,000 will become easier once $9,800 becomes an immediate support,” and that will take place “when today’s candle closes above $9,800” and the digital currency’s price stays above that level tomorrow, DiPasquale stated.
Jon Pearlstone, publisher of the newsletter CryptoPatterns, also weighed in, emphasizing the key importance of $9,500 and noting that “we saw a strong surge in price and volume this week when that level broke.”
“There are multiple indicators showing BTC still has upside here, with a few examples being strong volume, holding above the $9,500 level for several days, and solid strength in large altcoin such as ETH and LTC,” he stated.
“You could characterize $10,000 as strong resistance,” said Pearlstone.
However, he added that “it’s more likely a range being tested so falling below $9,500 is not a break of support without other indicators confirming.”
Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet, also provided his outlook on the markets.
“I think we’ll see $10k very soon,” he stated.
“It’s only a matter of time.”
He noted that while many investors are a bit hesitant because “they don’t want to get caught when/if it dips,” “volume is looking great.”
“I would be confident in saying we’re in a bull market,” he added, predicting that once bitcoin enjoys some more gains, investors will start selling their altcoins (digital currencies other than bitcoin) and putting the proceeds into the world’s most prominent cryptocurrency.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.