Bitcoin Price Nears $10,000: Why Is It Being Rejected Again?

Bitcoin tried breaking $10,000 again, but was met with strong resistance. The world’s first cryptocurrency went back to its sideways range, but it might be getting closer to break the $10k soon.

Bitcoin successfully went past $10,000 at 6.45 p.m. UTC (2.45 p.m. ET) Wednesday on Coinbase, before a dramatic sell off brought the price back to a low $9,700. The move past $10,000 and back to $9,700 have liquidated long and short sellers on both sides in all exchanges with such services. For example, on BitMEX, total long liquidations stands at $1.9 million. However, short-sellers took the largest hit because around $18 million was liquidated in the last 24 hours.

The $10,000 level has proved itself to be very difficult to break. This is the third time this June that bulls tried to break the psychological resistance and failed to do so.

However, this opens the idea that, sooner or later, the $10,000 wall will break. According to crypto investor Koroush A.K., the $10,000 siege is a significant milestone.

However, a break above $10,000 and maintaining it will allow that level to become a future support level for Bitcoin.

Many pundits are also looking at the Federal Reserve announcement as one of the reasons why Bitcoin rallied to $10,000. According to the Central Bank, interest rates will probably be kept near 0%, citing the “great uncertainty about the future.”

The price action is suggesting that initially, bulls found the Fed’s statement as a good signal. However, the charts revealed the move quickly lost steam. For AlphaPoint Vice President Scott Bambacigno, the Fed’s announcement, which effectively is saying there no changes in its current policy, is reason enough to buy Bitcoin. “Assets like gold ad Bitcoin should do well if the economy continues in this direction,” he told Coindesk.

For Bitcoin, failing to break $10,000 again might mean more sideways movement but the immediate support is at $9,700. If that level breaks, the next support level is at $9,443 range. On the upside, if Bitcoin moves above $10,000, a rally could position the token to try to challenge $10,200 and $10,400 levels in the short term.