Bitcoin saw a spectacular rally on Thursday and registered fresh three-month highs around $9,500. The leadingcryptocurrency by market capitalization stopped just shy of the $9,600 key resistance which is standing on the way to the $10,000 psychological level. It was the fifth day of growth in a row, with traders guessing if the token extends the ascent, or they should prepare for a bearish correction. Early on Friday, the digital currency shows signs of a retreat, trying to hold above the $9,400 area.
Despite bitcoin is not a proven safe-haven asset, the latest developments show that market participants prefer to buy the cryptocurrency in times of uncertainty in the traditional markets. As concerns over the spread of a China coronavirus persist, risk aversion prevails globally, so in many ways, this is the key bullish driver for the token at this stage.
Also, it can be seen that the entire cryptocurrency market feels comfortable these days. As the market capitalization grows along with the appeal of many digital tokens, it plays into the hands of bitcoin bulls as well. By the way, the total cryptocurrency market capitalization has grown substantially this week and stands just shy of $250 billion.
Of course, many market observes continue to point to the upcoming halving event as another reason behind the intense demand for the number one cryptocurrency. However, it remains to be seen if this event hasn’t been priced in already, as market participants have been preparing for it for some time already.
Now, the key question is if bitcoin manages to stay elevated and challenge the $10,000 barrier any time soon. Considering a strong resistance in the $9,600 area and the potential improvement in risk sentiment, BTCUSD could see a bearish correction first before another bull run will bring the prices to the psychological level. In the immediate term, the pair needs to hold above the $9,000 figure as traders seem to be shifting to a partial profit taking. Below this level, the 200-daily moving average lies that could act as a strong support.