Bitcoin’s buyers and sellers engaged in a heated battle yesterday just prior to the cryptocurrency’s critical monthly close
This led it to see heightened volatility, with bulls prevailing over bears
Buyers were able to propel the cryptocurrency above a massive monthly resistance level that has been holding strong throughout part of 2019 and all of 2020
The close above this level could be a bullish catalyst
Bitcoin has been seeing some turbulence as it consolidates within the mid-$9,000 region. Overnight the crypto plunged to lows of $9,300 before posting a sharp rebound that led it up to highs of over $9,600.
This volatility likely came about, in part, due to the cryptocurrency’s monthly close yesterday evening.
Previously, BTC was unable to close its monthly candle above $9,500 on multiple occasions throughout the past several months.
Yesterday, buyers were able to successfully surmount this level, now opening the gates for BTC to see further upside.
One analyst is noting that Bitcoin isn’t in the clear yet, as there is still one other key resistance level that must be broken for it to see any further upside.
Bitcoin Sees Immense Volatility Heading into Monthly Close
At the time of writing, Bitcoin is trading up nominally at its current price of $9,560. This marks a notable rebound from daily lows of $9,300 that were set overnight.
The cryptocurrency saw some turbulence yesterday afternoon, which is largely rooted in the importance of its weekly and monthly close that was posted yesterday.
Prior to midnight GMT time, sellers catalyzed an influx of selling pressure that led the crypto to lows of $9,300.
Buyers supported this level on multiple occasions, working hard to defend against a breakdown.
The defense of this level was successful, as buyers subsequently sparked a sharp rally that led Bitcoin to over $9,500 just prior to the candles closing.
This last-minute boost significantly bolstered BTC’s technical outlook, as it shows that it has firmly reclaimed its position within the $9,000 region.
Here’s Where BTC May Trend Next
As for where Bitcoin might go next after posting this bullish close, one analyst is setting his sights on $10,170.
He notes that this level is important because closing above it would mark a higher high on BTC’s recent uptrend.
“BTC Monthly Close: Great month for Bitcoin, as it broke above previous resistance and while this would typically be bullish – this happened in Jan followed by two-month downtrend. Want to see buyers continue to push above $10,173 on a weekly close for a higher-high on the trend,” he explained.
Image Courtesy of Josh Rager
Time will tell as to whether or not Bitcoin will be able to support itself above this key resistance level, but it is likely that its next reaction to $10,000 will be quite telling.
Featured image from Shutterstock.
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