What happened to cryptocurrency today: Bitcoin hits the new 2020 high, and analysts anticipate a surge towards $12,000 next.
The $10,400 Mark: What Is Bitcoin’s Driver?
After experiencing a downward movement, the frantic effort by Bitcoin bulls has driven the cryptocurrency to stay above the significant $10,000 price region. This happened during a volatile movement less than 12 hours ago. There have been some signs of resistance after the cryptocurrency witnessed a price rejection at $10,400, and experts believe that it is the resultant of the rapid price increase.
Furthermore, if the bullish move is sustained above the current key level in the forthcoming week, there is a high possibility that the price will rally until the next major resistance point at $12,000 is reached.
Will The Trend Continue As Bitcoin Explodes Past $10,000?
Bitcoin currently trades at $10,365 (at the time of writing), which is above five percent of its current daily low of $9,700. This is a remarkable upward movement, and the price is slightly below its current high. Beforehand, experts were stressing on the vulnerability of Bitcoin. They forecasted an extreme downward movement after the Bitcoin price failed to gain a firm position in the 5-figure price range.
However, the recent price surge has squashed this weakness, and Bitcoin is expected to continue riding upwards. George, a well-known crypto investor, predicts that Bitcoin price will rally up to $11,700 if it closes above $10,000 this week.
The Effect Of Bitcoin’s Open Interest On Price Movement
Despite the big bullish move, the fact remains that open interest in Bitcoin has been on the decline. This signals that the price surge is a short squeeze, which will result in a downward movement. Cantering Clark discussed this in his recent tweet and noted that he would wait to stack more buy positions after price breaks above $10,550.