It’s been an explosive past week for Bitcoin.
After flatlining around $9,200 for weeks, the leading cryptocurrency surged as high as $9,690 on top exchanges during Thursday’s trading session. The cryptocurrency has since been rejected at that high, falling to $9,550 as of this article’s writing.
This correction has not been welcomed. But Bitcoin stands to rally even further should it retest and surmount $9,700 in the near future, according to an analyst.
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Bitcoin Could Soon Surge to $10,400 If It Crosses This Level
According to a cryptocurrency analyst, Bitcoin’s price action is dependent on how it will react to the current price zone. Bitcoin breaking past $9,700 will enable the asset to move to $10,400 while a drop under $9,400 could snowball to a correction to $8,000:
“I believe we’re at a very pivotal level here. If we break above 9.7k I would expect 10.4k but I won’t get overly bullish before that Lose 9.4k and I’ll have my eyes on 9.2k. If that breaks, I think this will all have been a fakeout and we head to 8k Plan. Wait. React.”
Medium-term BTC analysis by crypto trader "TraderKoz" (@TraderKoz on Twitter). Chart from TradingView.com
Kelvin Koh, a partner at The Spartan Group, has been even more optimistic about the prospects of Bitcoin.
As reported by NewsBTC previously, the former Goldman Sachs partner argued that Bitcoin could “punch through $10,500,” then move towards $14,000:
“I have been saying that risk appetite has been rising and it is just a matter of time before this bullishness spills over to $BTC and $ETH. I expect $BTC to convincingly punch through $10.5K and head to $14K in a jiffy. The party has started.”
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Bulls Are In Control
Supporting the hope that Bitcoin will hold above $9,700 to enable a rise to $10,400 is fundamentals.
On Wednesday, the Office of the Comptroller of the Currency (OCC) wrote that U.S. banks can custody Bitcoin and cryptocurrency. Preston Byrne, a partner of Anderson Kill corporate technology group, says that the news is extremely positive for this space:
“Crypto lending and saving may be how the payment of interest becomes a thing again. Banks are desperate for yield. The faster they move the more market share they’ll obtain. Will be interesting to see who moves first and how quickly they go about it. But really. Getting out of banking law and into crypto law in 2013 was the best career move I ever made. So much growth yet to come.”
This news is expected by analysts to increase the adoption of Bitcoin by retail users and by institutions.
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Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Is At a "Pivotal Level" That May Rapidly Boost BTC to $10,400
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Author: Nick Chong