Bitcoin’s overnight swing to highs of over $9,900 has led the cryptocurrency to enter a firm bout of sideways trading that has persisted throughout the past day.
The cryptocurrency’s market structure has been bolstered by its ability to find some stability in the mid-$9,000 region despite the multiple rejections it has faced at $10,000.
Analysts are now noting that the next weekly candle close is likely to define which direction it trends in the weeks and even months to come.
One trader is even going so far as to note that a failure for it to close this candle above $10,000 could result in a dire decline that leads it into the lower-$8,000 region, forcing BTC to erase much of its recent gains.
Bitcoin’s Uptrend Could End if It Stays Below $10,000
BTC then lost its momentum and began declining, ultimately finding some significant support around $9,400 that slowed its drop.
From this point, BTC has once again found itself caught within its long-held trading range between roughly $9,500 and $9,800, currently trading up marginally at its current price of $9,730.
Nik Patel, a prominent cryptocurrency analyst, spoke about the benchmark digital asset in a recent blog post, explaining that the cryptocurrency could be well-positioned to push higher if it is able to close above $9,970 in the coming couple of days.
“If it closes above $9970, I’d expect expansion to the upside. Until then, it’s primarily a case of sitting tight, although the reaction off the 200-day moving average and close back above trendline resistance does mean that I favour more upside over the coming weeks,” he noted.
If this level is firmly surmounted, BTC will likely face some resistance at $10,100 and $10,500.
Depend on how BTC reacts to $10,100 and $10,500
One such trader explained that he will be adding to an existing long position if it recaptures this range, but whether or not he holds this position will depend on how BTC reacts to $10,100 and $10,500.
$BTC – I plan on adding to an existing long position if certain conditions are met.
I’d like to add more at each – a reclaim of the WO, Range Low, and the Range EQ.
I would prefer to hold this position for most of the week but it depends on the reactions at $10.1k & $10.5k. pic.twitter.com/ypAT1fBNAy
— UB (@CryptoUB) May 18, 2020
These factors could spell trouble for BTC
Popular cryptocurrency analyst Cantering Clark spoke about these in a recent tweet, noting that open interest is increasing, momentum is slowing, and funding is turning positive.
I am in a small long but it’s really just targeting the next sticky area at this high.
Need to be careful at this level.
-Momentum is slowing
-OI increasing
-Funding going more positiveThe resistance is resistance until it no longer is.$BTC
— Cantering Clark (@CanteringClark) May 17, 2020
“Need to be careful at this level. -Momentum is slowing -OI increasing -Funding going more positive,” he explained.
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