After a massive surge in April, bitcoin sparked a wave of optimism and bullish forecasts. Currently, the largest digital currency trades just over $9,300 with a market capitalization of $159.43 billion.
Bitcoin prices surged 35% in April and are flirting with the psychologically important $10,000 level, an impressive rebound from a decline that saw the king of cryptocurrencies slump more than 60% from its December peak around $20,000.
Some cryptocurrency market observers believe bitcoin will eventually reclaim its record highs and that the alt-coin’s recent bear market was normal.
“Bitcoin has gained over 55% since the beginning of April, while it moved from $6425 up to $9900. The $10k area remains a key resistance for the Bitcoin as it is a very strong psychological level,” reports FXStreet. “As price failed to break above a correction down followed and currently Bitcoin is trading at the 23.6% Fibonacci support, that is $9225.”
What’s Next for Bitcoin?
Some cryptocurrency market observers believe that if bitcoin can make it back to $10,000, rallies fromt there could be significant. Recently, the Bitcoin Dominance Index has been rising, confirming the dominant perch of the cryptocurrency. After bitcoin, the largest cryptocurrencies are Ethereum, Ripple, Bitcoin Cash and Litecoin.
Bitcoin’s rally above $9,000 comes just a couple of weeks after the cryptocurrency committed a death cross, where its 200-day moving average fell below its 50-day line. The death cross is normally bearish, but it needs to be validated, something bitcoin did not do.
“There was no clear break below that support, not to mention that price rejected the lower trendline of the ascending channel. At the moment Bitcoin is still bullish and after some consolidation the uptrend is likely to continue. If BTC/USD manages to break above the $10k with confidence, the next target is seen between $18-19k,” according to FXStreet.
Related: Futures Played a Part in Bitcoin’s Tumble
There are still some downside risks to consider.
“Nevertheless, the downside risk remains and Bitcoin could go more down, but only if there will be a daily close below $8980. In that case next support is seen at $7850, which is 61.8% Fibonacci retracement level,” notes FXStreet.
For more information on the cryptocurrency, visit our Bitcoin category.