The Bitcoin Price (BTC) tested the $10,000 a total of five times in the last 11 days. The price action can be considered as an up or down trend based on varying perspectives. The five-fold test of the key psychological level of $10,000 can be analyzed in two ways: The $10,000 resistance level weakens with each test, or the resistance is so strong that buyers cannot get out of it.
Many of the major cryptomone traders believe that the $9,000 zone is a starting point for a new rally extended into the $14,000 to $15,000 resistance range and with $20,000 as a mid-term target. Others expect a significant drop to the $7,000-$8,000 region first, before the price of Bitcoin can point to $14,000 and then attempt to break the record.
The short-term bullish scenario for Bitcoin
Traders who expect the Bitcoin price to return to the $10,000 resistance level as support and see a rally to key levels above this price, predict that the area of resistance weakened with multiple spikes to the $9,800-9,900 range.
Bitcoin tests the $9,900-$10,000 resistance range five times in 11 days
Bitcoin tests the resistance range of $9,900 to $10,000 five times in 11 days. Source: Tradingview
Traders continue to debate whether the current trend in Bitcoin prices is the beginning of an upward trend after the long-awaited halving of the block reward on May 11. In essence, the reduction of the block reward by half is a highly optimistic event for the price of Bitcoin because it directly affects the supply of BTCs, by halving the amount of Bitcoin extracted, decreasing the rate at which new BTCs are produced and subsequently how much is sold in the market.
Historically, the halvings of 2012 and 2016 resulted in a price increase of at least 2,500%. Therefore, the upward trajectory of BTC is that halving will push the price of Bitcoin forward in both the short and long term.
Related: According to Cointelegraph research, demand for Bitcoin increases after Halving
According to cryptomoney researcher Philip Swift, an indicator called 2-Year Moving Average Multiplier shows that Bitcoin reached its lowest point at $3,600 and broke a multi-year trend line at $5,800. At the macro level and in a longer-term scenario, Swift said the indicator suggests that the next reasonable target for the BTC is a historical high of $20,000. Swift tweeted:
„Bitcoin Machine Scam, Bitcoin Loophole Scam, Bitcoin Compass Scam, Bitcoin Era Scam, Crypto Trader Scam has been super bullish since bursting above the 2-year MA. We had our chance to accumulate before the hedge fund guys got excited about Bitcoin. Next stop now is the 2yrMA x5 [over $20,000].