Bitcoin Begins the New Week with a Firm Footing

Bitcoin Begins the New Week with a Firm Footing

Notably, Bitcoin’s (BTC) volatility has dropped in the past month compared to previous months. The benchmark cryptocurrency has been whipsawing in a $1k range between the $10,000 and $11,000 psychological marks. 

Last week, BTC struggled to reach the upper level of the range, near $11,000, however, all the efforts by bulls were brought to naught following the BitMEX scandal along with President Trump’s COVID-19 infection. These fundamental factors caused the cryptocurrency to crash to its lowest level in the week at $10,380. 

Bitcoin has managed to fight the prevailing pressure over the weekend and appears to have found stability above $10,500. The $10,500 price tag is a key level for the cryptocurrency, as it was a difficult level to break for a good part of 2020. 

Many analysts expect Bitcoin to recover by tagging-alone with Wall Street Futures, given its recent resilience and price stability. 

BTCUSD – 4-Hour Chart

Key BTC Levels to Watch in the Near-Term

As mentioned earlier, the $10,500 support is a critical level you watch in the meantime, followed by the $10,350 support (along with the newly-formed ascending trendline). 

A break below the trendline could precipitate a dip to the $10,000 area once again. Subsequent weakness from that level could send Bitcoin to the unfilled $9,660 CME gaps. 

On the flip side, the major resistance level hangs around the $11,000 range top. However, BTC will have to cleanly scale last week’s strong resistance at $10,900 for an $11k price tag to be possible. 

Nonetheless, BTC’s next action remains unclear as the cryptocurrency fixes its eyes on the equity markets. 

Total Market Cap: $340.9 billion

Bitcoin Market Cap: $196 billion

BTC Dominance Index: 57.6%

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.