After flatlining around $9,600-9,700 for a number of days, Bitcoin saw an explosive price move early Sunday morning.
Following a failed attempt to break $9,800, BTC exploded to $9,150 on spot exchanges and $9,300 on margin exchanges, liquidating dozens of millions.
BTC price chart from TradingView.com
Bitcoin has since faced down a reversal as bulls failed to maintain the pressure of this surge, seemingly catalyzed by the futures market. A prominent Wall Street analyst still remains optimistic about the cryptocurrency market, arguing the $10,500 resistance will soon be toppled.
Bitcoin Will Soon Top $10,500: Fundstrat Analyst
Rob Sluymer, a technical strategist at Fundstrat Global Advisors, remains hopeful that Bitcoin will continue higher after its initial breakout:
“We remain positive on the overall precise structure for Bitcoin and do expect it push through $10,000-$10,500 as part of its longer term bullish technical profile.”
In a research note shared with Bloomberg, Sluymer added that BTC breaking $10,500 will likely lead to an approximately 31% rally to $13,800. That region “remains a resistance band that Bitcoin will need to break above to signal its next move to resistance at $13,800.”
This comes after Sluymer wrote in a March note that BTC’s medium-term outlook was damaged after the capitulation crash to $3,700:
“For now, technically we will again give Bitcoin the benefit of the doubt that it is attempting to bottom but recognize Bitcoin will likely need months of consolidation to repair the technical damage now in place.”
This comment was proven true as BTC has been caught in a consolidation pattern for nearly three months now.
Sluymer’s co-worker, co-founder Tom Lee, is predicting a further rally in the stock market. Considering the correlation that has formed between the S&P 500 and Bitcoin, such a rally could lead the cryptocurrency market higher.
Bulls in Control
Other market commentators, citing technicals and on-chain metrics, agree with Sluymer’s market sentiment that BTC buyers are in control.
As reported by NewsBTC previously, Blockfyre’s head of technical analysis commented that Bitcoin has just closed above a three-year downtrend. The downtrend was formed at BTC’s all-time high price of $20,000 in 2020.
“#Bitcoin just had it’s first daily close ever ABOVE the 3 year downtrend line from ATH’s when CME Futures launched. This is potentially an invalidation with a HH of any bearish case and the official start of a new macro bull trend.”
Others add that with the weekly candle and monthly candle close nearing, BTC managing to move above $9,800 is pivotal for the bull case.