The importance of $ 10,500 for Bitcoin price and factors affecting the price
On June 1, Bitcoin price unexpectedly exploded, rising as high as $ 10,450 on major exchanges in a move to liquidate tens of millions of short positions on BitMEX. However, Bitcoin was rejected at $ 10,500, dropping $ 1,600 in three minutes, reinforcing the importance of $ 10,500 in the eyes of analysts.
The importance of $ 10,500 for Bitcoin price
So far, the $ 10,500 milestone has become the most critical level for the Bitcoin market over the past year. Specifically, two important milestones:
- The Xi Pump that was seen in October of 2019
- The rally to $ 10,500 earlier this year
Analyst Caesar said:
If $BTC can re-claim these highs and close above on the daily I think we can start targeting 13k-14k.
If not we may be looking at a liquidity run and I’d start looking to next get long ideally at the yearly open, 7k-7.5k.
I’m leaning bullish. Fuck the immoral bitcoin bears. pic.twitter.com/yJ2w67Z0I3
— Caesar? (@thrillmex) June 5, 2020
Meanwhile, Kelvin Spartan Black Koh of The Spartan Group, former Goldman Sachs partner, has another explanation of the importance of $ 10,500:
We have been in this $10K holding pattern for almost a month but it is clear the market wants to creep higher.
I am speculating we will blow through $10.5K within the next 2-3 weeks.
When we do, the move to $13-14K will be swift.
— SpartanBlack (@SpartanBlack_1) June 5, 2020
Fortunately, cryptocurrencies are currently positioned to surpass $ 10,500 in the coming days. Analysts note that the fundamentals of the Bitcoin market are improving, which supports higher prices.
There have been other positive fundamentals identified by Mike McGlone, a senior commodity strategist at Bloomberg Intelligence.
“Bitcoin’s bull case continues to strengthen as central banks continue to print an unprecedented amount of money to deter the economic impact of the ongoing recession. Meanwhile, BTC price action is currently mirroring that seen after 2016’s halving, which saw the cryptocurrency dip before rallying to new highs. Finally, volatility continues to decrease in a manner supportive of growth.”
Factors affecting BTC price shortly
Analysts also noted that Bitcoin is currently in a precarious position from a technical perspective. This shows that it is ready to see blemishes in the coming days and weeks.
First, investors are becoming greedy when prices fluctuate within the $ 9,700 zone, which is also a bad influence on Bitcoin. From a fundamental perspective, the increasingly positive sentiment among investors seems to suggest that bears may have the upper hand over bulls.
This is the view of Arcane Research that investors are increasingly greedy when Bitcoin fluctuates below $ 10,000.
“The Fear & Greed Index has been ranging between neutral and greedy lately … The greedy periods have been short-lived, and something investors should monitor if we finally stabilize above the neutral state.”
Source: Arcane Research
However, this does not mean that Bitcoin’s price will witness any sudden short-term decline, however, because Bitcoin can still go higher and trap more buyers before it drops.
Second, based on technical analysis, it is also possible to declare the price of BTC ready to see some further short-term drawbacks.
Some analysts are still waiting for Bitcoin to set a new low in 2020, giving a chart showing a major descending trend that is causing it to decline over a long period.
Looking at the chart above, it seems that Bitcoin is positioned to drop first to $ 7,900 before finding any substantial support. It may then decline even lower if the buyer does not protect this support.
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