Bitcoin has been rejected several times from the mythical $10,000 level. This resistance level is definitely one of the most important levels for Bitcoin, technically and psychologically. The last time Bitcoin attempted a break above $10,000 was back in October 2019 when the digital asset peaked at $10,370 and crashed shortly after. Bitcoin was only able to stay above $10,000 for a few hours before an extended downtrend to $6,435.
A week ago, Bitcoin looked quite strong and remained above $10,000 for a few days but bull strength was slowly shifting away as the digital asset started to look weaker after 3 days of sideways trading around the $10,370 resistance. The bulls have attempted to break above $10,000 a few times again now as the price has just been rejected from $9,500 today.
What Bitcoin Fundamentals Could Help Its Price?
There are definitely a few fundamental factors that could boost Bitcoin above $10,000 again. For instance, the recent Coronavirus outbreak has actually been positively impacting cryptocurrencies as people are looking for safe havens. It’s important to note that the virus is also affecting a lot of people in China where most Bitcoin mining facilities are currently located.
Additionally, the upcoming Bitcoin halving could also be a positive factor in the near future as many experts believe that it is still not priced in.
Key Bitcoin Resistances
Looking at the 4-hour chart, Bitcoin was able to set an uptrend after the recent 6% crash and it’s still currently holding it. The bulls are fighting to defend $9,000, a crucial level that if broken, would give bears the 4-hour chart downtrend. Bitcoin is now facing resistance at $9,350 and a double top at $9,490 which is basically $9,500.
Zooming out, however, Bitcoin is still looking extremely strong. The weekly chart is definitely in an uptrend and this recent Bitcoin mini-crash has changed nothing. BTC is currently trading above both EMA’s and it’s simply looking to set a higher low compared to $6,871. The bulls will look at the 12-period EMA as support if the 4-hour chart breaks bearish.