Bitcoin Crosses $10,000, What’s Next For The Market

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Bitcoin crosses $10,000 threshold for first time

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Bitcoin Crosses USD 10,000, More Gains Likely?

The market sentiment improved further and it seems like buyers are slowly taking charge. There was no negative news or development, which helped cryptocurrencies and lifted the prices of bitcoin, Ethereum, litecoin, ripple and bitcoin cash. Technically, the current bias is bullish and further gains seem likely.

Bitcoin Bitcoin succeeded in surpassing the USD 10,000 level. BTC/USD traded above the USD 10,300 and formed a high at USD 10,323. Later, a downside correction was initiated and the price moved back below USD 10,000.
However, the current price action is positive with more than 1% intraday gains. The current price is USD 9,910 and the price is preparing for the next move. It may perhaps move above the USD 10,000 resistance once again.
On the downside, supports are at USD 9,800, 9,600 and 9,500. To the topside, a break above USD 10,300 could push the price towards USD 10,500.

Ethereum
Ethereum is trading 1.2% lower today. However, the ETH/USD pair was able to hold the USD 900 support. At the moment, the pair is struggling to move above the USD 945 and 950 resistance levels.
The stated resistance levels are crucial hurdles, and a break above USD 950 is required for a test of the all-important USD 1,000 level. Support on the downside are at USD 900 and 880.

Bitcoin Cash and Ripple
Bitcoin cash was one the best performing coins today. It is currently trading 8.10% higher from the USD 1,301 low. It moved above the USD 1,500 level, formed a high at USD 1,546 and later started a downside correction. BCH/USD is currently trading at USD 1,475 and it looks set for another push above USD 1,500.
Ripple was down 2.6% to USD 1.080. XRP/USD is struggling to move above the USD 1.15 and 1.20 resistance levels. In the short term, there could be ranging moves between USD 1.00 and 1.20.

If Bitcoin (BTC) Hits $10,000 Like Analysts Expect, What’s Next?

The Importance of Bitcoin At $10,000

Ever since Bitcoin (BTC) has entered the upper-$8,000s and low-$9,000s, analysts have been eyeing $10,000.

They see this level as a validation of Bitcoin’s validity as a viable asset. As Fundstrat Global Advisors’ Tom Lee put it best in a tweet, “[$10,000] will see FOMO from those who gloated about the 90% crash in BTC… and those who saw Bitcoin dead as forever.” Indeed, during 2020’s rally, all analysts and mainstream media alike eyed $10,000 as a level to keep an eye on. And once this price point was crossed, it was fireworks all around.

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It isn’t just a strong physiological and sentimental level, but a important technical level too. During 2020’s downturn, $10,000 remained a key resistance and support.

What Happens When $10,000 is Breached

The importance of a five-figure Bitcoin has led many to claim that once BTC breaches $10,000, all hell may break lose. In a recent tweet, Tyler Winklevoss, the (purported) Facebook pioneer turned Gemini co-founder, claimed that once the cryptocurrency surmounts the aforementioned price point, “you can be it’s going to break $15,000.” What this Winklevoss twin seems to be referring to is the idea of market momentum. A move past $10,000 implies that bulls have control of the market, which should create further buying pressure.

$15,000 — over 50% higher than current levels — may just be the tip of the iceberg though. According to Lee, once Bitcoin reaches $10,000, “Level 10” FOMO will grace this market, which last occurred when BTC blipped above $4,500 in late-2020. If history is any guide, the cryptocurrency market will shoot even higher once $10,000 is breached.

In a recent podcast with Binance’s chief financial officer, Wei Zhou, Lee opined that there will be a “fast and furious” move to $20,000 following a break and close above $10,000. And from there, Bitcoin will double in the next five months, reaching $40,000 in a jaw-dropping move.

Barriers to Surmount

While everyone is keeping their eyes glued to $10,000, some believe that there will be some barriers before Bitcoin reaches that level. In fact, you’ve already seen these barriers come to fruition over the past couple of days, with cryptocurrencies consolidating and experiencing some short-term weakness. This, for the time being anyway, may continue.

Reported by Bloomberg on Wednesday, Bitcoin is facing down a “key technical obstacle” — this being the Relative Strength Index (RSI) reaching overbought levels. It is important to note that the last time RSI went overbought, nothing detrimental came to fruition immediately, meaning that calls for a strong retracement from here may just be an overreaction.

There are a few harrowing signs though. This chart from well-known analyst Filb Filb shows “lackluster volume” and a disappointing price structure. Filb adds that the long to short ratio on Bitfinex has begun to favor bears, implying a potential drop to lower levels soon.

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