Why Bitcoin Hitting $10,500 Was So Important

By stvleong | Steven Leong | 31 May 2020


Bitcoin started mounting a strong comeback earlier this week, after days of stagnation and consolidation.

The leading cryptocurrency is now selling for $9,650, the highest price in over a week and more than 13 per cent higher than the $8,550 lows seen earlier this month during a retracement.

Yet Bitcoin remains below a critical resistance area that analysts say can unlock upside not seen since 2019 if BTC succeeds in reclaiming the zone as help.

The $10,500 Importance to Bitcoin

As arbitrary as that amount can sound, $10,500 is currently one of Bitcoin's most important price ranges.

As can be seen below, Bitcoin was rejected during many rallies over the past year by prices in the vicinity of that level.

The height of the "Xi pump" seen in late 2019 was $10,500, although it also marked the height of the rally seen earlier this year.

9a2ef91c13b96a587ae3d706a1531cc59bd38d9c61e82d1d1fbe93967aaa287e.png

The price is also a point at which a number of critical Bitcoin chart structures in Bearish will get invalidated, leaving space for BTC to turn upside down. As explained by one commenter:

4318e36253c6b7d99ba7f04c7819ec64dfab8f855e7ea2969597a3c0a76e65c9.png

Given the level 's importance, it should come as no surprise that analysts have said that if Bitcoin could break above $10,500, a strong upswing could follow.

It will not be easy

While all eyes might be on $10,500, that's not to say Bitcoin's amount would be easy to break past.

Order book data from Bitfinex 's flagship BTC / USD market shows that sell-side orders currently converge around $10,000-10,300.

This was illustrated by the chart below, which a famous crypto-trader shared. This shows BTC's price behavior since the beginning of the year coupled with "OB (order book) Dominance Bands" tracker.

The indicator shows the price points at which an order book activity exists, with the bands' opacity showing how significant that activity is.

71228ef78d90854b568aa774e0688036e96f657ce9d83aeb401fde27665cf938.png

The order book data is important, as previous price behavior on the Bitcoin market was expected.

 

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stvleong
stvleong

I'm a Digital Marketing Lead | Crypto Trader | Affiliate Marketer and love to write posts related to crypto and anything that is interesting.


Steven Leong
Steven Leong

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