After such a strong break of $10,000 and surge to above $12,000, Bitcoin investors are shocked to be back again at the key level rather than onward to more new highs. But with $10,000 acting as such strong resistance for so long, the market may be retesting this critical zone to confirm it as support.
At the same time, Bitcoin is retesting downtrend resistance as support and was rejected from a multi-year trend line, now acting as resistance. With the cryptocurrency at such a crossroads, what does passing beyond any of the clear lines drawn in the sand mean for the trend ahead?
Bitcoin Bullish Retest Searches For Triangle Support At $10,000
Support and resistance levels can be horizontal, or diagonal. Oddly enough, price action reaching pivotal horizontal zones also tend to do so when a trend line acts as a target.
For one reason or another, orders cluster in these areas. Rounded numbers like $10,000 can also act as psychological resistance, just due to its importance over the last several years of price action.
$10,000 is also 50% of the cryptocurrency’s peak price from 2017. Significant support and resistance lies at this important Fibonacci level, mathematically.
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