Bitcoin has been on a near-relentless rally higher over the past 60 days, entering a clear uptrend after bottoming at $6,400 in December of 2019. It has gained 63 percent since the local bottom.
Although this is already an impressive feat in and of itself, analysts expected the cryptocurrency’s prospects to turn even more optimistic with the passing of a key price point — $10,500.
However, as soon as the bitcoin price hit the highly anticipated $10,500 level, it immediately slipped by four percent against the USD. The move led even the best performing cryptocurrencies in this rally including Ethereum to plunge by around six percent.
The Ethereum price drops by six percent after bitcoin rejects $10,500 (source: tradingview.com)
Bitcoin flipping $10,500 into support will be massive for the bull case
Prominent technical analyst Cred — who sports over 140,000 followers — remarked that since $9,500 has been breached, Bitcoin’s nearest resistance is $10,500, the midpoint of the tried-and-true range between $9,500 and $11,500.
So far, the cryptocurrency has rejected that level.
Though, Cred remarked that if Bitcoin can confirm a close above $10,600 — just a smidgen above the resistance he identified — prices will continue higher, likely unfettered until the other long-term resistance he identified at $11,500.
Close above $9500 took price back within old weekly range.
Now at resistance around range midpoint (~$10500).
Not chasing this daily engulfing, will be waiting for deeper pullback ($9500) or daily continuation $10600.
— Cred (@CryptoCred) February 11, 2020
The importance of $10,500 was echoed by analyst Pierre,