Bitcoin’s Next Pivotal Price Move
Investors may get an opportunity to buy before the next wave of FOMO
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Bitcoin surged nearly 7% over the past 30 hours, rising above $10,300. This pivotal point could determine where it is headed next.
Bitcoin’s Make-or-Break Moment Here
The recent bullish impulse that the flagship cryptocurrency went through allowed it to hit the $10,460 resistance level. This price barrier is key to Bitcoin’s trend and could be the catalyst for the next major price movement.
As a matter of fact, closing above it would take BTC to make the first higher high since the peak of late June 2019, when it was trading at nearly 14,000. Upon the breakout point, investors would likely enter a FOMO (fear-of-missing-out) stage pushing this crypto to the next level of resistance between $11,500 and $13,000.
Such an upward movement would add credence to the idea that a new macro bull market has begun.
Nevertheless, the last time Bitcoin tried to break above this price hurdle was in late October 2019 following Chinese President Xi Jinping’s decision to embrace blockchain technology. The bullish momentum was quickly rejected by this resistance level, triggering a 38% correction.
The pioneer cryptocurrency went from trading at a high of $10,480 to hit a low of $6,480 in mid-December 2019. Now, a similar scenario could take place.
If the $10,460 resistance level is able to hold, Bitcoin could plummet 30% to form the right shoulder of a potential head-and-shoulders pattern, which now appears to be developing on its 1-day chart. This massive retracement could represent an opportunity for sidelined investors to get back into the market at a good price.
A new inflow of capital could take BTC to bounce off the support zone between $7,900 and $7,300 back to the neckline around $10,460. A break above the neckline, following the downward momentum, could send Bitcoin up 38%.
This target is determined by measuring the distance between the head and the neckline and adding it to the breakout point.
In early October 2019, Rekt Capital, a renowned technical analyst, wrote a blog post dubbed “Bitcoin Halving — everything you need to know.” There, he highlighted that prior to the 2012 halving, Bitcoin retraced over 50% approximately 100 days before the event took place. Similarly, BTC plunged 38% 24 days before the 2016 block rewards reduction event occured. Though there are not any outstanding commonalities among these retraces, it is possible that a significant retrace will happen leading up to the third halving, according to Rekt Capital.
Under this premise, investors should pay close attention to the $10,460 resistance level. This significant price hurdle would determine whether Bitcoin is bound for a further advance or a steep decline.