Bitcoin prices have been fluctuating close to $10,000 for the last few hours, after failing to break through that key, psychological level this afternoon.
The digital currency, the world’s largest by market value, reached $9,979.72 at roughly 2:45 p.m. EDT, CoinDesk figures show.
After rising to that price, its highest since June 2, the digital currency quickly retreated, falling to less than $9,750 before 3 p.m. EDT, additional CoinDesk data reveals.
[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.]
While the digital currency started rallying shortly after the Federal Reserve released a statement at 2 p.m. EDT, analysts polled for this article were split on whether the central bank communication helped drive the cryptocurrency’s gains.
“I think the Fed announcement is great news for Bitcoin, but it doesn’t move the needle,” said Marouane Garçon, managing director of crypto-to-crypto derivatives platform Amulet.
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, provided a similar perspective, describing bitcoin’s recent test of the $10,000 level as being “unrelated to the Fed announcement.”
Kiana Danial, CEO of Invest Diva, offered an alternate point of view, stating that “today’s volatility may have been derived from the USD selloff after the Fed statement.”
“Since Bitcoin is traded versus the USD, a weak US dollar will push the BTC/USD higher,” she noted.
“If the USD sell-off continues, the Bitcoin bulls may finally find enough sentiment to break above the $10K resistance,” said Danial.
However, she emphasized that they have failed to surpass this level convincingly over the last several months, in spite of making several attempts.
DiPasquale provided a more optimistic assessment, stating that:
“If the price remains in the same pattern, it is likely that we will see a break above $10,000 soon, with $10,200 serving as a short-term resistance. On the downside, $9,500 is acting as a reliable support.”
Should bitcoin succeed in breaking through $10,000, its “next key resistance levels are at $11,400 and $13,500,” said Danial, citing “the Fibonacci retracement levels tracing the downtrend that started in July 2019 and ended in March 2020.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.