As the cryptocurrency market is gradually returning to confidence, bitcoin is cautiously extending its recovery and now appears to be looking for further gains. The price is trading in striking distance of $9,000, where the $9,150 area is seen as key for the bulls - a break above could open the doors for a recovery to a major local psychological level $10,000.
The crypto market volatility has significantly decreased in the past week, after bitcoin reached three-month lows below $6,000 and since is licking its wounds. A sort of stabilization may attract new buyers and send the digital currency higher on the back speculations among the crypto-enthusiasts on bullish longer-term prospects of bitcoin.
However, following the recent spectacular roller-coaster ride and amid the continuing regulatory challenges, investors’ behavior will likely be more careful, suggesting the upside potential is limited in the short-term. Besides, any sign of another regulatory crackdown could prompt traders to sell the asset amid fears that the price may reach fresh lows. The short-term technical outlook will improve further, should bitcoin overcome the $9,150 level with the next target at $10,000.
By Helen Rush
Senior Analyst at Capital Markets