Bitcoin has recently seen convincing gains, increasing in value as global asset markets address concerns about the coronavirus.
The strong upward movement of the digital currency has been blocked in recent days, facing significant resistance, said technical analysts.
However, this relative discomfort will probably pass soon enough, according to several market observers.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Cryptocurrency has been trading between $ 9,000 and $ 9,200 since early yesterday morning, according to data from CoinDesk.
This calm came after bitcoin rallied noticeably earlier in the week, climbing after falling to almost $ 8,400, additional figures from CoinDesk reveal.
The ramp-up represented “a solid and measured movement,” according to Tim Enneking, CEO of Digital Capital Management.
Kiana Danial, CEO of Invest Diva, provided a similar perspective, noting that bitcoin “has experienced a healthy global rebound since March 1”.
In the future, the two analysts made bullish predictions on the cryptocurrency.
“We think it will break higher in the next few days or two,” said Enneking,
Danial also intervened, stating that “although we can see resistance slowing the speed of bullish momentum, it is unlikely to stop it at this point.”
Evan Kuo, CEO and co-founder of digital currency company Ampleforth, seemed a little less certain.
“Bitcoin has been on a decreasing trend for a while, the question now is whether things are working,” he noted.
“The markets are obviously shaken by the coronavirus, and bitcoin is an uncorrelated risk asset, but a risk asset nonetheless,” said Kuo.
The digital currency could also face headwinds due to strong short selling activity, said Pankaj Balani, CEO and co-founder of Delta Exchange.
He described the range between $ 9,300 and $ 9,500 as a “high resistance area”, noting that “we have seen a lot of short circuit activity at these levels on the Delta Exchange and we expect to see new shorts in this area. “
Disclosure: I have bitcoin, bitcoin cash, litecoin, ether and EOS.