The immediate resistance has to do with the $10,000 area. Bitcoin traded above in many occasions during 2020 but failed to consolidate, triggering corrections to $8,700. Now the cryptocurrency it testing levels above the five-figure mark. From a technical and also psychological perspective, it is vital that it remains able to hold solid above.
The road to more gains has more obstacles ahead that need to be cleared for a rally extension. A range between $10,000 and $10,500 could be considered a resistance band. Technically, a weekly close cleary above $10,500 should point further north. How high could it go in the near-term? The area at $11,000 seems reachable, and above, at $11,100 there is a strong resistance that might be difficult to break.
Another failure of BTC/USD at $10,000 would point to a lack of strength, suggesting price action could remain within the range 10,100 and 8,900 dollars. In the case of a significant close below $8,950, it would likely trigger more losses, potentially reaching $7,600.
Volatility could play an important role ahead. If price climbs cleary above $10,500 it could spark sharp price moves, in both directions. It could be the case that many sell orders are awaiting to be activated near $11,000 or could be the case that a lot of traders expect a clear break above $11,000 to jump on?
The current price level in BTC/USD is relevant: it could spark more gains, suggest lack of strength, it could be a nice level for a reversal and even favour a big jump in volatility. Significant moves in Bitcoin could move the entire cryptomarket.
