Most analysts are banking on Bitcoin to rally despite the crypto failing to hold above $9,500 against the U.S. dollar as the crypto trades at $9,079 as of press time. However, before the popular digital currency could see further bullishness, some market observers believe that a decline is likely to occur first.

Last week, BTC was on the verge of a major downturn with two moving averages converging to form a death cross pattern on the charts, but buyers piled on the crypto and spiked the price form $7,353 up to a high of $10,350. Bullish momentum for BTC did dissipate in the first three days of the trading week, even with a close of $9557 on Sunday. Bitcoin also traded at $9,051 on Tuesday and reached a new weekly low of $9,028 on Wednesday.

Analyst see a move above the 100-day moving average, which sits currently at $9,605, would be necessary for Bitcoin to target higher resistance levels, namely this week's high of $9,938. Once that happens, above $10,000 levels would be in sight. If BTC falls even further, the support level it could test is $9,000 followed by $8,800 to $8,700, which could trigger a subsequent rally.

The 10% move

The surprise surge in Bitcoin's price that happened on Friday could primarily be due to Xi Jinping's publicized comments. The Chinese president said that his country should expedite research into blockchain technology. China is planning to launch a cryptocurrency of its own that is referred to as DCEP or Digital Currency Electronic Payment, which is like a digital version of the yuan.

cnLedger, a trusted cryptocurrency news source in China, stated:

"We must take blockchain as an important breakthrough for independent innovation of core technologies, clarify the main directions, increase investment, focus on a number of key technologies, and accelerate the development of blockchain and industrial innovation."

That optimism could have transferred to more Bitcoin buying. Still, it would take the same kind of positivity to breathe life back to five-digit hopes for the cryptocurrency or perhaps something more miraculous such as fulfilling a strangely accurate BTC price projection, a.k.a. "The 4chan Prophecy."

China was once a stronghold of bitcoin but the sector was unregulated and transactions were under the radar of the authorities China was once a stronghold of bitcoin but the sector was unregulated and transactions were under the radar of the authorities Photo: AFP / ANTHONY WALLACE