After facing a bout of capitulation yesterday, Bitcoin has posted a strong recovery from its recent lows and is now attempting to solidify its foothold within the mid-$10,000 region.
This strong recovery from yesterday’s sharp drop has led many analysts and investors alike to believe that the cryptocurrency is reversing its recent downtrend and is about to begin journeying upwards, but some analysts are still expressing caution.
Bitcoin Runs Towards $10,400 as Buyers Fight Back
At the time of writing, Bitcoin is trading up nearly 2% at its current price of $10,365, which marks a significant rally from its recent lows of roughly $9,500 that were set yesterday when the crypto faced a sharp and sudden bout of selling pressure.
Importantly, this rally does signal that BTC’s bulls were not ready to surrender to bears, who were previously attempting to push it down to its next major support level of $9,100.
As for what Bitcoin could target next, it is likely that $12,000 will remain a strong level of resistance in the near-term, and a failure to decisively break above this price level could lead to a massive sell-off that marks the end of the uptrend that BTC has incurred throughout the first half of 2019.
Mayne, a popular crypto analyst on Twitter, explained that he believes BTC could be primed for a further movement up to $10,700 in the near-future, as long as it is able to hold strong above $10,300.
“$BTC: If you zoom in with a microscope you can see the small bounce at $10,100 I expected lol. Went lower than I thought we would but liking this reaction so far. If we can hold $10,300 I like a test of $10,700 next,” he said in a recent tweet.
Could Recent Sell Off Mark an Inflection Point?
Luke Martin, another popular crypto analyst on Twitter, explained in a recent tweet that he believes that the recent sell-off that sent Bitcoin to lows of $9,500 could be an inflection point for the cryptocurrency.
Now, he is noting that the subsequent bounce seems to have confirmed this possibility, referencing a chart that elucidates that the crypto’s next major region of resistance exists around $10,800.
“Supportive of a bounce indeed -> bounce initiated…$BTC fun first day back in front of the charts,” Martin explained while referencing the below chart.
In the coming hours and days, whether or not Bitcoin is able to maintain its upwards momentum will likely signal whether or not the crypto will be able to reverse its recent downtrend, or if further losses are imminent.