- BTC is trading near key psychological resistance
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A successful close above the $10,000 barrier may initiate a bigger rally
Cryptocurrency investors launched new year in upbeat moods. Most of the digital assets gained in January. Bitcoin price is getting closer and closer to the $10k mark, that can be seen as a psychological barrier. A lot will depend on whether the coin breaks above this level or not as Bitcoin often sets the tone for altcoins. Having said that, let’s start today’s analysis with Bitcoin chart.
Bitcoin
Looking at Bitcoin chart on D1 interval, one can see that the price reached the upper limit of Overbalance structure after breaking above the downward trendline. Sellers may use this level to regain control over the market. However, one should keep in mind that the psychological $10000 barrier lies slightly above. Should Bitcoin reach it, bears may get even more encouraged. On the other hand, a break above this hurdle could see upward move accelerate.
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Bitcoin D1 interval. Source: xStation5
Technical situation on the second largest cryptocurrency looks better. The upward move on Ethereum accelerated following a break above the resistance at $175. This level was marked with the upper limit of Overbalance structure and the downward trendline. Currently, the $271 handle should act as a nearest key resistance as the 61.8% Fibonacci retracement of the latest downward swing can be found there.
Ethereum D1 interval. Source: xStation5
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