Analysts are noting that today’s daily close should offer valuable insight into the benchmark cryptocurrency’s short-term outlook.
Bitcoin Garners Notable Upwards Momentum as Analysts Watch Its Daily Close
At the time of writing, Bitcoin is trading up just under 2% at its current price of $9,440, marking a climb from daily lows of $9,000 that were set overnight when the crypto faced a harsh rejection upon its first visit to $9,400.
Buyers were able to post an ardent defense of this level, subsequently allowing BTC to reclaim its position within the mid-$9,000 region.
It now appears that the cryptocurrency is pushing up against some heavy resistance at $9,500. After a brief break above this level a few hours ago, it did face a slight rejection that subsequently led it lower.“BTC rejecting at resistance at the moment. This is the area I want to see Bitcoin push through to keep running up to $10,000+. Regardless, this daily candle will likely close as a higher-high on the trend,” he explained.
BTC’s “Path of Maximum Pain” Suggests a Move to its 2020 Highs is Imminent
Many traders believe that assets like Bitcoin tend to move in ways that cause the most pain to the higher number of active traders. If this historical trend persists in the near-term, it could mean that BTC is poised to revisit its 2020 highs at roughly $10,500. Another respected trader mused this possibility in , also harkening to the importance of the cryptocurrency’s daily candle close.“Close today above $9600 and I think that $10550 double top is going to get taken out before any downside. Path of maximum pain still looks to be upwards. I’d only want to short this if we closed today below the April high at 9480 and then got a strong sell-off following it.”
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