Within the last hour Bitcoin (BTC) price pushed through the $11,000 level in a high volume surge which saw the price reach a new 2020 high at $11,394. At the time of publishing the price has pulled back slightly to the $10,800 range.
The price of Bitcoin (BTC) managed to rally to $11,394 on the Coinbase crypto exchange, officially breaching $11,000 psychological level for the first time this year. It has also pushed through a multi-year trend, that goes way back in 2017.
Both investors and technical analysts are mostly looking positive at the Bitcoin’s decampment. Very fast growth from $9,933 to over $11,300 in only 24 hours officially defeated the possibility of a triple top forming. The term triple top explains the three sequential peaks at a similar level. Until its recent breakout above $10,500, BTC was at risk of seeing the technical pattern nobody really wants.
At the time of writing, the price of Bitcoin is continuing its rally and is rising by 6.37% to $10,840.
BTC Moves Higher after Two Months of Being Stuck
The price of Bitcoin was stuck in a two-month range since May and some of the analysts even started losing their faith asking what if this is the peak and the Bitcoin can’t go up anymore. They were pretty much struggling to see at least some volatility. Bitcoin stood relatively motionless in the $9,000 to $9,500 range, consolidating under the $10,500 resistance level.
However, when an asset starts being under an important resistance level for a prolonged period, it does raise the possibility of a breakout.
Following Bitcoin’s abrupt increase to $10,900, traders, investors, and technical analysts responded positively.
Barry Silbert, the CEO of Grayscale and major crypto VC firm DCG, expects the next resistance for Bitcoin to hover around $13,000.
Rafael Schultze-Kraft, the chief technical officer at Glassnode explained that in a situation where you have low resistance or selling pressure above $10,900, what can happen is that this could show that the recent rise was actually a critical breakout that happened in order to boost the Bitcoin’s momentum.
Traders now seem to be expecting two things following the strong Bitcoin rally. First, some investors assume alternative cryptocurrencies to underperform. Second, market research firms predict a room for a bigger rally, based on strong fundamentals.
Ari Paul, the CIO at BlockTower Capital, explained:
“A big part of altcoins rallying for the last few months has been BTC in a tight range. IMO, most alts likely to underperform BTC if it breaks out in either direction.”
As the momentum around Bitcoin continues to rise, Glassnode researchers accentuated that on-chain fundamentals of Bitcoin are only bolstering.
Expecting Strong Bitcoin Rally
However, in the near-term, cryptocurrency trader Scott Melker said that Bitcoin has to close above the $10,500 level at a higher time frame. A close of the daily candle above it would confirm a proper rally.
He explained:
“Bitcoin just made a macro higher high for the first time in a year. I like to wait until a candle closes for confirmation, because a close below that red line would be an epic bearish SFP. Today is the moment of truth.”
While some traders are pretty much careful at a big resistance area, other investors and on-chain market researchers expect a stronger rally to happen.
Meanwhile, Bloomberg’s mid-year report hinted that the price of Bitcoin could soon rise above $12,000. The report explains that the continuous growth of Grayscale’s Bitcoin Trust or GBTC and the contraction of the premium in comparison to the Bitcoin spot market should also be interpreted as bullish for the market.
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