Well well well, how the tables turn…
Over the past 24 hours, we saw the price of bitcoin surge by more than seven percent, boosting the price above the $10k key resistance level once more. Before this minor rally occurred, several analysts and cryptocurrency traders including Josh Rager and Flood indicated that the leading cryptocurrency could actually shift below the $9k mark and test the lower waters if an important support level in $9.3k was breached.
On August 31st Flood said:
“Odds are you’re likely free rolling a short with a tight stop here. IF 9.3k breaks on this run volume is anemic and selling will most likely accelerate us down to 8.4k. Could possibly even wick to 8k, but I’d start scaling in long anything close to 8.4k.”
After the highly anticipated weekly close of bitcoin though, the cryptocurrency demonstrated strength in smaller time frames, moving past a key psychological level at $10,000 with a sturdy surge in volume.
The analyst went onto highlight that the structure in which bitcoin could have moved down to test $8k is now invalid. This suggests that the asset is in a better place for a longer rally than what we saw in August.
Technical analysts seem to be looking forward to bitcoin testing the range between $9,400 to $11,500.
That being said it’s worth saying that we aren’t financial investors and this isn’t financial advice. Please do your own research before putting your money in a cryptocurrency and always remember to trade safe!
There are multiple fundamental factors bitcoin has that could contribute to its upside movement over the next year.
It will be interesting to see how this situation plays out for bitcoin. For more news on this and other crypto updates, keep it with CryptoDaily!