The Bitcoin price broke off. Bitcoin has effectively traded in a $ 1,500 range for almost two months. That means bulls and bears are caught in an endless tug of war, with neither side succeeding in establishing a trend.But according to a crypto fund manager, an outbreak is imminent.
Analysts emphasize the importance of $ 10,500 for Bitcoin
A founding partner of Bitazu Capital, Mohit Sorout, recently shared the chart below, emphasizing the “importance of the price level that BTC has struggled with in the past month”.Sorout’s analysis is neutral, but the fund manager comments that with the lack of directionality according to the Average Directional Movement Index (ADX) and volatility reaching lows of several months, a big breakout is in the works.If Bitcoin crosses the $ 10,500 mark, there will be an even greater recovery as BTC enters a zone of low historical liquidity – or, as Sorout aptly put it, “thin air”.
It is only a matter of time before this resistance is broken
There is a combination of factors suggesting that it is only a matter of time before the $ 10,500 mark is decisively converted from resistance to support.For example, technical analyst Eric “Parabolic” Thies notes that two important macro indicators show that “the time to buy Bitcoin is below $ 10k” (the indicators in question are the Chaikin Money Flow and the stochastic RSI).Thies reports that both indicators are structurally identical to what they were before the 2016-2017 rally, which brought Bitcoin to $ 20,000 in less than two years.On the fundamental side of things, Mike McGlone of Bloomberg says that “something really has to go wrong” so that BTC doesn’t go up. He mentions halving, declining volatility, growing correlation with gold, the introduction of BTC futures, and mass money pressure as reasons to be bullish.