If you bought Bitcoin at the start of the last 24 hours, you’d likely be more than 5% percent up as the price of the leading cryptocurrency moved from below $10,000 to $10538 at the time of writing.
However, the quick gains do not detract from the fact that Bitcoin at some point within the week sold for $9266, before beginning its journey to reclaim $10,000.
The big question at the moment, though, is how long the cryptocurrency can keep its foothold above $10,500 or generally defend prices above the $10k level.
To find the answer would require keeping a close eye on the charts with the recent spike currently searching for consolidation levels.
In the last ten hours, the price of Bitcoin has stayed between $10300-$10,500, creating the perfect scenario for a new support level anywhere above the $10k range to emerge in the next few hours.
Perfectly holding the consolidation levels shown in the chart below within that foreseeable period, would signal to outside investors that the 5% increase is not a bull trap, thus triggering more BTC purchases than sales.
Conversely, it can be expected that a $200-$300 drop-in Bitcoin price over the next few hours could as well create a scare with large chunk traders likely going to want to take some profits off the table.
Either way, the current price scenario looks set to usher in either a chance for Bitcoin to retarget $11k in less than two weeks after falling below the mark, or continue the bearish pattern that kicked following the $13,000 2019 high.
As Coinfomania noted yesterday, it may be too early to conclude that the Bitcoin bearish phase in the light of the recent interest rate cut by the U.S Federal Reserve. A significant period must elapse before the effects of such a move kick in unless Bitcoin, of course, digs into its pocket to brandish more surprises as it has throughout its lifetime.
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