What happened to cryptocurrency today: Bitcoin’s price is improving after witnessing a pullback from $10,500; this level is believed to be a heavy resistance level.
Analysts predict a short-term reversal to the $9000’s range, but the bullish sentiment is still strong.
The Last Pullback Before The Big Move
In view of the mining reward halving set to happen in late April, retail traders anticipate a massive uptrend to breakeven with the price of mining. When the halving occurs, Bitcoin mining will no longer be profitable if the price drops below $13,000.
As a result, the cryptocurrency market will either witness a significant Bitcoin price increase or a reduction in mining difficulty. The Bitcoin blockchain network has had a constantly increasing hashrate over the past two years, and it sets a new record high almost every month.
With the established miners’ resources and the large mining centers, Bitcoin price is more likely to hit the breakeven price rather than the hashrate declining to converge with the price of Bitcoin.
What Are The Experts’ Views?
Technical analysis shows that price is currently experiencing a minor reversal. An expert indicates that Bitcoin support levels are at the $8,000s range, precisely between $8,250 and $8,600. If Bitcoin’s price remains above $9,000 level, it will maintain the solid support zone between $9,200 and $9,500.
A decline below the $8,000s level will signify a bearish price action. However, the occurrence of a major reversal is fat-fetched as Bitcoin still maintains a support level above $9,200. But in the event it happens, experts say it will be the last significant reversal before Bitcoin starts skyrocketing.
Why Is A Reversal In View?
Currently, the Bitcoin price meets three factors for a potential reversal. These include;
- Lack of follow-through on the $10,500 push
- Huge funding
- Previous blow-off top spot for explicit invalidation
The high liquidity on BitMEX and other crypto trading platforms gives traders the incentive to sell because it will force the big investors to compensate short sellers in a bid to maintain balance in the market.