Bitcoin prices have settled around $9,800 on Wednesday, still struggling to make another bull run at the $10,000 psychological level. Despite the leading digital currency stays afloat, it still lacks the upside momentum to make a clear break above the key barrier that could open the way to fresh highs.
At the moment, it looks like BTCUSD is ready for some consolidation around the current levels. The daily RSI looks neutral and stays shy of overbought levels as there is some uncertainty in the cryptocurrency markets.
In the longer run, chances for a rally towards $20,000 are growing as traders refrain from aggressive profit-taking at the current attractive levels. It may suggest that market participants are in the accumulation phase now but lack the determination to push the token higher, as bitcoin needs the additional catalyst to challenge the mentioned barrier.
Once above the $9,800 area, BTCUSD may regain $10,000 but even in this scenario, it will need to make some efforts to confirm an important breakout and extend the rally without a retreat. Should the pair fail to hold around the current prices and start to retreat, the cryptocurrency number one may see a downward correction.
If so, the initial support comes around $9,600 and then at $9,500. Once below these levels, BTCUSD could challenge the $9,300 region. Even in a bearish scenario, it looks like the digital currency will be able to stay above the $9,000 handle. of note, $9,300 is an important level – as long as the prices stay above this handle, bitcoin’s dynamics is considered bullish.
Once the prices are firmly above $10,000, bitcoin will face fairly strong resistance around $10,500-10,600. The prices didn’t trade above this region since early-October 2019. Then, the $10,900 hurdle will come into bulls’ focus. In the longer run, an important target arrives at $12,300. A successful break above this barrier will open the way to $13,200.