Will Bitcoin Price Finally Conquer $10K? Here Are 3 Things to Consider

Bitcoin (BTC) bulls were celebrating the digital asset's recent surge above $10,000 for the get-go fourth dimension this decade, just the smiles were short-lived as Bitcoin failed to hold higher up $10K for a meaningful amount of fourth dimension.

Is this another short-lived bull run like the seven times Bitcoin crossed $10K in 2022? Or is this time different?

Daily crypto marketplace operation. Source: Coin360.com

$10K Bitcoin in 2022

BTC USD daily nautical chart. Source: TradingView

Every bit tin be seen in the nautical chart in a higher place, Bitcoin crossed over the $10,000 mark on seven occasions in 2022. Each time, the leading digital nugget failed to maintain its price above this level for more a few days.

During this time, altcoins rallied equally if the much-predictable "alt season" was upon us. Just as we later found out, it wasn't, and at that place was still more than downside to come up.

So is this time around any dissimilar? Here are a few important things to consider.

Is 7 the magic number in 2022?

Since Bitcoin surpassed $10K on Feb. ix, nosotros take seen the leading digital nugget rocket above and beneath this key psychological barrier line exactly vii times. Withal, the big difference hither, is that it has occurred over a 7-24-hour interval period, whereas in 2022 it was over a four-month period.

BTC USD daily hourly Source: TradingView

This shows that volatility has returned to the crypto market, but can we expect Bitcoin to cross upward beyond the $10K cost mark again in the short term? Or is this a long-overdue correction for Bitcoin that volition see the toll plummet farther?

To determine the likely outcome, at that place are a few more factors I feel are worth considering at this point.

The $675 CME gap

Fighting for the bulls we have the fact that the CME closed at $ten,475 on Friday, so if Bitcoin stays at its current price of around $9,800, it will leave a gap of around $675 to fill up side by side calendar week.

BTC USD CME Source: TradingView

Terminal week saw a like size gap close on Monday, Feb. 10. However, this was closing a short gap, whereas next week is closing a loftier gap.

Should the CME gap make full, it ways Bitcoin will rocket back over $10K and on its way to $10,500 making it the 8th time Bitcoin has surpassed $10K in 2022, which would already shell the 2022 tape.

Bitcoin mining difficulty to drop for the first time in 2022

Every ii weeks this year the mining difficulty has increased and at the same fourth dimension and then has the price of Bitcoin.

BTC mining difficulty. Source: BTC.com

However, nosotros're approaching a yearly showtime, where the mining difficulty is set to decrease by an estimated 2% in nine days' time.

Much like the price, nothing can go upwardly forever, and the mining difficulty is also experiencing a pullback. Only while there is no guarantee that this is driving the current price of Bitcoin, I'll be feeling a lot more than bullish once the mining difficulty starts to increase again.

Bullish scenario

BTC USD daily hourly Source: TradingView

Despite the pullbacks that Bitcoin has experienced over this weekend, it has withal managed to hold support in the current ascending channel that information technology has been in since the beginning of January 2022.

Providing Bitcoin doesn't begin to break down below the support level throughout next week, and then this would see $10,000 as the new support for Bitcoin, with key resistance being around the middle of the channel at $10,500, and $11,500 at the upper cease.

Bearish scenario

BTC USD daily hourly Source: TradingView

Technically speaking, Bitcoin has broken the support of the ascending channel if you count today's candlewick down. However, until I see a candle shut below this channel I won't be counting information technology every bit valid.

Equally such, back up is currently around $9,700. The next level of back up can be found at the 200-day moving average, which is sitting at $8,900. Should this back up fail to concord, then this opens up a completely new era for Bitcoin, as historically information technology has never fallen below this level.

The views and opinions expressed here are solely those of @officiallykeith and do non necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should deport your own research when making a decision.

Source: https://cointelegraph.com/news/will-bitcoin-price-finally-conquer-10k-here-are-3-things-to-consider

Posted by: ramseythipper82.blogspot.com

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