The $10,000 Doldrums

May 20, 2020 / by Crypto.IQ

In ancient times when sailing ships were the primary mechanism by which global trade functioned, an area near the equator called the doldrums was dreaded. Essentially, sailing ships depended on the easterly trade winds which are located to the north and south of the equator, but right near the equator these winds often stop, causing the sailing ships to get stuck for weeks or even months.

It feels like Bitcoin (BTC) is stuck in its own doldrums at the $10,000 level. Over and over again Bitcoin (BTC) has approached $10,000, and perhaps even slightly exceeded $10,000, only to be pushed lower again. In fact, Bitcoin (BTC) has been in the $10,000 doldrums since the end of April.

Chart showing the price of Bitcoin (BTC) since April 2019, the red/green line is approximately the $10,000 level

Zooming out, $10,000 has been a staunch resistance level for Bitcoin (BTC) for roughly 9 months, since August 2019. Before that Bitcoin (BTC) rallied to as high as $13,800 in June, and then there was a double top to the rally in August with Bitcoin (BTC) going as high as $12,000.

After that, Bitcoin (BTC) has made numerous attempts to breach $10,000, including in September, November, February, and now in May.

Thus, $10,000 is the level to watch to see if Bitcoin (BTC) will really have a major rally, and until Bitcoin (BTC) definitively breaks through this level and goes to $11,000, people should be careful about saying that the big rally is here.

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