Market Sentiment Swings as Bitcoin Taps $10,000, But Strong Resistance Remains Ahead

Bitcoin (BTC) and the aggregated crypto markets incurred a sudden influx of buying pressure yesterday that allowed them to climb significantly higher. This upwards momentum came about after a long period of downwards pressure that had jeopardized the upwards momentum that the markets had incurred throughout the first half of 2019.

Analysts are now noting that this latest movement that sent Bitcoin past $10,000 has led to a massive shift in market sentiment, which could prove to be a negative thing for the crypto markets that ultimately results in a continuation of the recently incurred sell off.

Bitcoin (BTC) Breaks Above $10k, But Further Losses May be Imminent

At the time of writing, Bitcoin is trading up nearly 4% at its current price of $10,035 and is up significantly from daily lows of just over $9,500.

This price surge came about after a long period of selling pressure that was first started in late-June when Bitcoin failed to break above $13,800 and was perpetuated earlier this month when BTC rapidly surged to $11,000 before facing a swift rejection that sent it reeling down.

Analysts are now noting that this latest price surge has added some technical strength to the cryptocurrency, but they are also warning that there may be another minor pullback before BTC solidifies its position within the five-figure price region.

“$BTC update: [Target] hit. I’m still bullish but it makes a lot of sense to take some off here and wait for the daily to close at 10300+. If it doesn’t I’d close the trade anyway. Trading when sentiment shifts from one extreme to the other is my favorite way to trade,” DonAlt explained while referencing resistance on the below chart.

$BTC update:

hit

I'm still bullish but it makes a lot of sense to take some off here and wait for the daily to close at 10300+
If it doesn't I'd close the trade anyway.

Trading when sentiment shifts from one extreme to the other is my favorite way to trade. pic.twitter.com/uUxD66FEop

— DonAlt (@CryptoDonAlt) July 31, 2019

Shifting Market Sentiment May be a Trap, Claims Analyst 

Although the general market sentiment was fairly bearish before this movement, with many analysts anticipating a movement to $8,800, analysts are now noting that this newfound bullishness that came about after Bitcoin’s move above $10,000 could be a trap.

“With the longer trend in mind, the test of the upper range should be read as ‘bait and switches’. The get people bullish again [revival of FOMO] and then… the predictable. The psychology is one of anxiety,” Dave The Wave, a cryptocurrency analyst, warned in a recent tweet.

With the longer trend in mind, the test of the upper range should be read as 'bait and switches'. The get people bullish again [revival of FOMO] and then….. the predictable. The psychology is one of anxiety.

— dave the wave (@davthewave) July 31, 2019

As the week continues on and as analysts gain greater insight into whether or not this latest price surge is sustainable, it is highly probable that it will grow clearer as to whether or not Bitcoin will trade bullishly or bearishly in the near-future.

Featured image from Shutterstock.

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