Tanya Abrosimova
Independent Analyst
- BTC jumped above critical $10,000 amid strong rally across the board.
- Experts believe that this development will serve as a trigger for strong upside momentum.
Bitcoin smashed above psychological $10,000 and stopped within a whisker of $11,000 during early Asian hours on Saturday. At the time of writing, the first digital asset is changing hands at $10,750, having gained over 10% in recent 24 hours. Altcoins follow the king, though Bitcoin (BTC) remains an uncontested growth leader of the day.
We may be in for another strong rally as the price settled above $10,000. Earlier this month a prominent Bitcoin bull Tom Lee said that a sustainable move above this handle would trigger a FOMO (Fear Of Missing Out) rally and take Bitcoin towards $40,000 within months.
George McDonaugh from blockchain and cryptocurrency investment firm KR1 also gives importance to the $10,000 barrier.
"When we reach $10,000 the world will be hit with a slue of headlines and those that thought it was a passing fad will raise an eyebrow and log it mentally that its something they should look into. This is how the cycle continues and I expect prices to surge after this mental marker is reached," he commented recently.
Bitcoin's technical picture
Meanwhile, looking technically, Bitcoin (BTC) has entered a consolidation phase as the bulls need to take a breath before another assault at the crucial $11,000 barrier strengthened by the recent high and the upper boundary of 1-hour Bollinger Band. Once it is cleared, the sky will be the limit.
On the downside, the correction from an overbought territory may take the price towards the support created by the upper line of 1-day Bollinger Band at $10,340. A sustainable move below this handle will open up the way towards the next bearish aim of $10,000.
BTC/USD, 1-hour chart
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