Bitcoin’s intense uptrend seen throughout the past couple of days has allowed it to navigate towards its crucial high time frame resistance region that sits at $10,500.
The crypto came incredibly close to tapping this price level earlier today, but the selling pressure here was significant and it has since declined back down to $10,300.
Although buyers have not yet expressed that they have enough strength to shatter this crucial level, bears’ inability to catalyze any type of intense selloff at this price level is a positive sign for its mid-term outlook.
Analysts are also noting that there is some resistance within the upper-$10,300 region as well, which may be difficult for BTC to hold above in the near-term.
One trader, however, believes that Bitcoin’s slowing momentum seen this morning is its way of “building up steam” before it makes another push higher.
He explained that the longer it consolidates around its current price level, the more fuel buyers will have to shatter the $10,500 resistance that looms just above where it currently sits.
Bitcoin Flashes Signs of Strength, But Key Resistance Levels Remain
At the time of writing, Bitcoin is trading up over 4% at its current price of $10,400. This is around where its price has stalled at in the time following the surge seen yesterday evening.
Earlier today, bulls attempted to shatter the massive resistance that sits around $10,500, but they were stopped short. From here, BTC declined as low as $10,200 before it found some support.
This price action indicates that the benchmark cryptocurrency is now entering a fresh consolidation phase.
In addition to facing selling pressure at its 2020 highs, sellers also appear to have laced the area just below $10,400 with some significant orders, leading one trader to watch to see how Bitcoin interacts with this level.
“Taking some profits here at 10,342 HTF resistance. Let’s see what comes next,” he noted.
Image Courtesy of Pentoshi. Chart via TradingView.
BTC is “Building Up Steam” for a Big Push Higher, Claims Trader
Another trader explained in a recent tweet that the ongoing consolidation is buyers’ way of “building up steam” before they propel Bitcoin past $10,500.
“BTC: Looks like we’re building up steam here. Traders short what they deem to be the local top for a few hours (adds fuel for the push past 10.5K highs). Breakout traders handing their bags over to big players on these non-factor wicks. All going according to plan I suppose.”
Image Courtesy of Chase_NL. Chart via TradingView.
As Bitcoin navigates through this substantial resistance level, whether or not it can break and maintain above $10,500 should offer investors greater insight into its mid-term outlook.
Featured image from Unsplash. Charts via TradingView.
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Author: Cole Petersen