Why $10,000 is so Important for Bitcoin

Over the past week, the benchmark cryptocurrency increased by more than 15%. At the moment, BTC is trading around $9250, confidently stepping over the threshold $9000.
Alexander Kuptsikevich
Bitcoin quickly attracts demand in a downturn, buying pressure is growing

Thus, the coin continues to follow the technical analysts’ forecasts, reinforcing the demand of market participants and not allowing corrections to cause bearish sentiment. The next most important resistance level is expected at $10000.

Price dynamics near this level promises to attract particularly close attention. On the one hand, it is precisely this level that can provoke really strong profit-taking activity. If the growth momentum dries right after touching $10,000, we can see a massive correction, as many will rush to “exit”.

On another hand, so far more likely scenario in light of the ongoing rally is that Bitcoin will continue to blaze through resistance levels one by one. Fear of lost profits and desire to join the new crypto rally can further move the prices up.

Anyway, the market reaction around $10,000 can be indicative, laying the foundations for the trend for the following days and even weeks.

Rumours about Facebook and the Telegram cryptocurrencies have long been in the focus of the crypto market participants. Pavel Durov does not yet make it clear what exactly is happening with the most desired product of the messenger, while a Facebook subsidiary launched a digital wallet Calibra with a cryptocurrency called Libra. The digital wallet will receive support from major brands, including MasterCard, Visa, PayPal, and many other major heavyweights. Thus, a wide range of sellers will be able to get paid via this cryptocurrency. It became known that Calibra has already published Whitepaper, and also launched Test Net. The launch for clients is planned in the first half of 2020. Libra cryptocurrency will be built into WhatsApp and Facebook Messenger.

It is simply impossible to underestimate such an event, but you should also think about what will happen to the “first” cryptocurrencies. Now the whole market is on the rise: along with BTC, altcoins are also growing. However, it must be admitted: this growth is almost completely speculative. No one wants to spend Bitcoin (BTC) or Zcash (ZEC) on daily expenses, because tomorrow their price may add 10% or more. The same fate awaits Libra or TON if their prices will float freely, and, therefore, the only way to get a massive adoption of digital currency is to make it stable. On the one hand, this will nullify the speculative demand, on the other hand, Facebook’s huge user base will provide Libra with tremendous liquidity and trade volume.

This article was written by FxPro

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.