Bitcoin (BTC) saw some intense bull-favoring volatility this morning when the cryptocurrency rallied from $9,600 to over $10,000, with the latest upwards movement marking an ardent defense of the support that exists around $9,500.
This latest break above $10,000 may lead the cryptocurrency to see significantly further upwards momentum, as it has marked a notable increase in the strength of BTC’s current technical situation.
It is important to note, however, that the benchmark crypto may first see a pullback that leads it as low as $9,900, with a continued defense of this level making it a prime spot to enter fresh positions.
Bitcoin Stabilizes Within $10,000 Region After Intense Morning Rally
At the time of writing, Bitcoin is trading up just under 5% at its current price of $10,100, with its latest upwards movement allowing it to climb from $9,600 – which is where it had previously been caught within a multi-day bout of sideways trading.
In the near-term it does appear to be likely that the cryptocurrency will see some further upwards momentum, as this latest movement seems to elucidate significant underlying strength amongst the cryptocurrency’s buyers.
In spite of this, HornHairs, a prominent crypto trader on Twitter, explained that he is looking for Bitcoin to revisit between $9,900 and $10,000 before he compounds his current long positions, suggesting that this may be the level to watch for in the short-term.
“BTC: Will look to compound current long from $9.9-10k level if we get a dip,” he explained.
If BTC does retrace to this level and bulls post a strong defense of it, it will signal that this is a resistance-turned-support, which could help lead it to rally higher.
BTC Builds Robust Technical Strength Following Latest Movement
One factor that should be carefully noted in the near-term is the fact that Bitcoin’s early-morning rally allowed it to close above a key resistance level that was previously suppressing its price action.
UB – another well-respected cryptocurrency analyst and trader, shared his thoughts on the crypto’s current technical strength in a recent tweet, in which he notes that BTC could easily rally up towards $10,600 before finding any significant resistance.
“BTC – Strong 4h close above the Key Resistance I have on my chart. My next area of interest is the untapped highs at ~$10.6k confluent with the HTF EQ. We’ll see the reaction there before potentially taking some off of the long. Going well so far!” He stated while referencing the levels seen on the below chart.
The coming several days and weeks should offer insight into the long-term implications of Bitcoin’s ongoing 2020 rally, as the fact that all recent dips have been quickly reversed seems to suggest that this is a long-term uptrend.
Featured image from Shutterstock.