Just a day after Goldman Sachs came out with a scathing presentation on Bitcoin, the asset is rallying. Investors are clearly shaking off the “FUD” the multinational bank through the cryptocurrency market’s way.
Just minutes ago as of the time of this article’s writing, BTC shot higher to cross $9,600. It reached a local high of $9,625.
This is the highest price Bitcoin has traded at in the past seven days. Though, prices remain a few percentage points shy of the May highs of $10,000.
Bitcoin price chart from TradingView.com
While the move is still ongoing and volatility is present, prices are primed to close above the $9,500 resistance. This is notable for bulls on a short-term time frame.
Demonstrating the short-term strength of bulls is the liquidation events on exchanges like BitMEX.
According to crypto derivatives tracker Skew.com, approximately $40 million worth of BitMEX shorts has been liquidated over the past 36 hours.
Adding to this, BitMEX has begun to trade over the BTC spot price. This indicates that derivatives traders trust the ongoing rally.
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Bitcoin Approaching Crucial Resistance
Despite the strength of the ongoing move, Bitcoin is approaching key resistance on a medium-term time frame.
One trader recently shared the chart below, showing that Bitcoin is approaching a symmetrical triangle resistance.
The upper level of the triangle held on four separate occasions over the past few weeks. BTC finding a rejection here, at $9,600, could lead to a retracement back to the high-$8,000s.
Chart of BTC from crypto trader Crypt0mer (@Crypto0mer on Twitter).
Other commentators have also called for traders to be cautious.
Another trader noted that order book data from Bitfinex shows that there remain key sell-side orders around $10,000. The $10,000 region has held as support multiple times over the past 10 months.
Fundamental Case Favoring Bulls
The technical data disregards the fact that the fundamentals are favoring Bitcoin price appreciation.
As reported by NewsBTC previously, the on-chain trends of the asset remain decisively bullish.
“In spite of BTC’s mild -4.4% downswing today, its NVT looks healthy, and our model is showing a semi-bullish signal. The amount of unique tokens being transacted on Bitcoin network is slightly above average for in May, according to where price levels currently sit,” blockchain analytics firm Santiment wrote.
Also, the Chinese yuan has continued to slide against the dollar. This could show that Bitcoin is a safe haven play in the coming weeks, just as it was in 2019.
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Featured Image from Shutterstock
