It’s been a tough last few days for Bitcoin.
Despite the recent rally from the $8,600 lows, which took BTC to $9,300, the market remains depressed. The BTC is trading just under 10% below the May highs of $10,100. Old coins are in a similar boat.
The downward price action could unfortunately continue if Bitcoin does not overcome two important resistances that lie ahead.
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bit coin trapped under the key resistance level, or two
Analyst Nunya Bizniz recently noted that Bitcoin is currently trading below a key resistance level of $9,200. The technical level he has indicated marked three earlier highs, one in July, one in August and one in February this year.
“The VWAP, which was anchored at the June 26 high, was a formidable resistance. I flirt with him again. Note: All breaks above the AVWAP have always led to lower highs. A closing price above $9,944 would change that,” the analyst commented.
Bitcoin also remains below the decisive limit of 10,500 US dollars.
This level has a similar meaning to the level identified by Bizniz. Some even say that $10,500 is more important to Bitcoin’s cop case than the VWAP.
The chief technical analyst of the cryptographic research company BlockFyre wrote
“If Bitcoin gets over it. There’s not much in the way of a new all-time high. They would appear on the horizon. There’s a lot less resistance than anything BTC has overcome on the way up. A macro high would be confirmed. Do not underestimate the impact.
Another analyst shared this view. He wrote in April that if Bitcoin manages to convert $10,500 into support, its bearish trend will turn into an uptrend.
This is remarkable because the analyst in question is one who demanded that BTC re-examine the $3,000 series and XRP the $0.10 series months earlier.
It will break through, show basics
The fundamentals suggest that Bitcoin will break through the two resistances mentioned above.
As NewsBTC reported earlier, the BTC will benefit if the Chinese yuan slips against the US dollar.
Recent tensions in Hong Kong and the subsequent global reaction have weakened the Chinese currency against other currencies. Against the Dollar, the Yuan is at a low point that has not been seen since the peak of the trade war in 2019.
Still a while away, Bitcoin will break through the resistance and prepare this nascent market for an even bigger rally.
“The most bullish technical analysis event of the year will be the breaking of the $10,500 resistance. Once we get that, it’s showtime,” said one analyst.
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