Here’s the Level Bitcoin Needs to Break to See a “Textbook Swing” to $10,500
Bitcoin’s price action in the time following its break above its multi-week trading range between $9,100 and $9,300 has been quite positive.
The cryptocurrency is now starting to stabilize around $9,600, and buyers are slowly pushing through the key resistance levels that have been suppressing its price action.
Despite the current strength, there are still many hurdles that buyers need to jump past to spark a significant upwards movement that shatters its macro trading range between $9,000 and $10,000.
One such hurdle currently sits at $9,800, which is where a massive quantity of sell orders exists.
While speaking about this level, one prominent trader explained that a firm break above this level would open the gates for a “textbook swing” up to $10,500.
If it does rally up to its 2020 highs, its reaction to the selling pressure here will be telling as to the strength of its macro uptrend.
Bitcoin Shows Signs of Strength as it Quickly Approaches a High Time Frame Resistance Level
At the time of writing, Bitcoin is trading up just under 1% at its current price of $9,600. This is around the level at which it has been trading throughout the past day.
It is important to note that the cryptocurrency does appear to be well-positioned to see further near-term upside.
Beyond $9,600, there isn’t much resistance until it reaches $9,800, which is the start of a supply zone that spans until roughly $10,000.
One analyst spoke about this supply zone in a recent post, offering a chart showing that it has sparked far-reaching corrections in previous weeks.
Image Courtesy of TraderXO. Chart via TradingView.
Here’s What Could Happen If Buyers Break Above $9,800
Assuming that buyers can break above the heavy selling pressure that exists around this price region, it could significantly bolster bulls and help catalyze a sharp climb higher.
Another highly respected analyst spoke about the importance of this level in a recent tweet.
He explains that Bitcoin is currently caught within a macro range between $8,800 and $9,800 and that a jump beyond the upper boundary of this range will spark a “textbook swing” to $10,500.
“Still in this month long range 8.8-9.8k. I try to avoid taking new positions in the middle of a pretty defined range so will be holding off for now. Stalling here would not be very bullish but a break above 9.8k should be a pretty textbook swing to 10.5k.”
Image Courtesy of Flood. Chart via TradingView.
If Bitcoin faces a swift rejection at this level, traders should expect to see a decline towards the lower end of its current macro trading range.
Featured image from Unsplash. Charts via TradingView.