2020-06-09 22:54:53
BTC Decision Time: Will the $10K Fortress Fall?There is a
seriously crazy amount of stuff happening in the world today.
Global pandemic.
A very just and long overdue fight for equal rights
.Economic turmoil.
The list can certainly go on, but we'll only add one more thing to it — decision time for Bitcoin.
This week, it is
very likely that bulls will once again storm the $10K BTC fortress, but will they finally succeed where they have been soundly defeated on several recent occasions?
Last week, bulls were routed, trounced, *decimated*, by staunch $10K defenders when it blasted clear of the five digit mark only to violently crash back into the $9,000 region.
Here are a few of the predominant factors holding BTC under.
Focus on Traditional MarketsRetail traders are nowhere to be found, as has been the case since civilians were completely and utterly rekt after the 2018 bear market.
That leaves the vast majority of price action up to the pros who have a lot on on their hands as of now. Compared with traditional market traders, there are far fewer traders whose sole focus is on cryptocurrency.
Meaning most traders are dabbling across several different types of assets — and not all of them digital. With the irrational-but-widely-accepted ongoing bull market in the Dow Jones and Nasdaq showing little sign of letting up, the spotlight on digital assets has dimmed.
There Is Still a Pandemic (In Case You Forgot)Simply put, there is still a pandemic on. This thing is just throwing a curveball no matter how you look at it.
Currently, it is impossible to say if the pandemic is a boon or hindrance to Bitcoin's fortunes. But, logic might tell us that under such circumstances, an unabated rally to the moon is just not in the cards yet.
From prior experience, Bitcoin always loves a good counter-trend rally, with the recent move from the $3,000s back to $10,000 being another one for the books.
Nonetheless, the insecurity around the economy and the whooping America has taken at the hands of the virus (being the world's leading source of BTC trading activity) means the bull-case is still psyched out.
$10,000 Is a Major Psychological HurdleCertain numbers are powerful. For Bitcoin, 10,000 is just such a number. Try as it might, BTC hasn't been able to completely break free of the orbit caused by 10,000's gravity.
Even after posting major gains and sustaining prices near the $20K mark, the Bitcoin pendulum has swung wildly even without the myriad forms of turmoil seen today.
Getting near the $10K mark has already been a very wild ride, and breaking through it will be one, too.
The reason we've seen such swift rejection at or above $10,000 recently is that bears need to exert immediate and definitive downward pressure to keep the psychological barrier in play. Too much time spent above $10K will give hope and gather forces on the other side of the equation.
So far, bears have shown more power in defending their fortress, but the longer that fortress remains sieged by prices hovering nearby, the sooner we can hope it will fall.
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