Bitcoin Flirts With $10,000 After Latest Fed Statement

Bitcoin prices are fluctuating near $10,000 for the previous few hours, after failing to interrupt through that key, psychological level this afternoon.

The digital currency, the world’s largest by market price, reached $9,979.72 at roughly 2:45 p.m. EDT, CoinDesk figures show.

After rising thereto price, its highest since June 2, the digital currency quickly retreated, falling too but $9,750 before 3 p.m. EDT, additional CoinDesk data reveals.

[Ed note: Investing in crypto coins or tokens is extremely speculative and therefore the market is basically unregulated. Anyone considering it should be prepared to lose their entire investment.]

While the digital currency started rallying shortly after the Fed released an announcement at 2 p.m. EDT, analysts polled for this text were split on whether the financial institution 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, decision-maker of crypto-to-crypto derivatives platform Amulet.

Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, provided an identical 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 are 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 interrupt above the $10K resistance,” said Danial.

However, she emphasized that they need did not surpass this level convincingly over the last several months, despite creating several attempts.

DiPasquale provided a more optimistic assessment, stating that:

“If the worth remains within the same pattern, it's likely that we'll see a possibility above $10,000 soon, with $10,200 serving as short-term resistance. On the downside, $9,500 is acting as a reliable support.”

Should bitcoin reach 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 led to March 2020.”

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, and EOS.