In recent hours, Bitcoin finally overcame the previous high of $9,400 and recorded a new yearly high above $9,600. It seems like the road to five digits is closer than ever in 2019.
Just yesterday, we mentioned that Bitcoin was nearing a sharp move, following odd days of relative price consolidation.
After its fascinating recovery during the first months of 2019, and with the recent hype amid Libra’s announcement, it felt like it was a matter of time until we saw a new high for the year.
Total Market Cap: $293 billion
Bitcoin Market Cap: $169.6 billion
BTC Dominance: 57.8%
Looking at the 1-day and 4-hour charts:
Support/Resistance: After surpassing the previous high of $9,400, Bitcoin’s price reached the aforementioned resistance area at $9600 – $9700 and had stopped there at the time of writing. Should this level be surpassed, the $10,000 target is the next major resistance and is likely to be reached quickly. Further targets are the resistance levels at $10,200 (the daily chart’s upper ascending line, marked in orange), $10,600, and the $11,000 area.
From below, the nearest support area now lies at the resistance-turned-support level of $9,400. If Bitcoin were to test this level and confirm it as support, it would be a very bullish sign.
Should the $9,400 level break down, the next support zone lies at $9,000 – $9,100. Further below is the $8,800 level, along with the daily chart’s lower ascending trend-line (marked in orange). Further below lies $8,600 (along with the 4-hour chart’s MA-50, marked in purple), before reaching $8,400, $8,200 – $8,250 and $8,100.
Trading Volume: The observed volume is still not significant. To produce a confirmation for the breakout, the bulls will need to produce some buyers’ volume.
Daily chart’s RSI: The RSI has encountered the 70 resistance, which is also this week’s highest RSI level. The Stochastic RSI oscillator saw a crossover to the bearish side in overbought territory, though still under bullish conditions.
Bitfinex open short positions: As expected, open short positions are gaining momentum along with the rising price of Bitcoin. There are now 26.7k BTC worth of open short positions.
