Bitcoin (BTC) Price Attempts to Find Support After Testing $10,000 Level
Bitcoin successfully crossed $10,000 but is now attempting to find a support level before consolidating its position.
2020 has proven to be positive for Bitcoin so far, with the leading digital currency rising all the way from under $6,900 to over $10,100 in just over a month. While there are numerous fundamental developments that can be credited for the surge, Bitcoin needs to find strong price support now that it has tested $10,000 and fallen below (currently trading around $9,800).
Why Did BTC Price Surge in 2020?
It started with the US-Iran tensions in early January, where many analysts observed that Bitcoin acted similar to gold - like a safe haven asset, in times of turmoil. Following that, we had the Coronavirus outbreak, which further put pressure on global markets and apparently pushed investors towards alternative investments, like Bitcoin.
Finally, we’ve had some momentum going because of the upcoming halving, which has traditionally resulted in a price surge as supply is cut in half and demand presumably increases.
All these factors put together helped Bitcoin post gains throughout January and February 2020 so far.
Will Bitcoin Stay Above $10,000?
The $10,000 level is a psychological barrier, breaking which requires volumes and positive market sentiment. As Bitcoin managed to create temporary supports at $9,500 and $9,800, the attempt at $10,000 became inevitable and happened today.
However, indicators show that the bulls may be reaching exhaustion and require a break, which is why the price fell shortly after surpassing $10,000 and is currently seeking a floor.
If Bitcoin manages to take strong support from the three possible levels, at $9,800, $9,600 and $9,500, we may see a rebound taking it back above $10,000. But if $9,500 fails to stand, then we can expect further losses, and a test of $10,000 will become less likely.
What Should Traders and Investors Consider?
Traders and medium-term investors would do good to ladder their buys at key support levels and lighten their positions on strength.
Disclaimer: Neither the author nor the publication takes responsibility for the assessment, analysis, and suggestions provided in this article. This article is not meant to provide financial advice and readers are recommended to conduct their own research and due diligence before investing in cryptocurrencies or digital assets.