What a weekend it was for Bitcoin. The primary cryptocurrency had breached to the 5-digit territory and concluded over $1000 addition to its value just in the past seven days.
In our most recent Bitcoin analysis from two days ago, we stated that:
“In case of a breakout – we are likely to witness Bitcoin retesting $9800 and possibly $10,000 in the next few days (if not later this weekend).”
Bitcoin didn’t wait and done all of that, and even more, during the weekend itself.
As of writing these lines, Bitcoin is trading safely around $10,300 in anticipation to face it’s real major test very soon.
The 2020 BTC High – Broken (Updated)
During mid-February, when the COVID19 pandemic was only limited to China and some parts of Asia, and the global markets broke records, Bitcoin recorded its highest price year to date.
Now, Bitcoin is getting very close to this Golden number of $10,500. This will be the nearest significant test for Bitcoin.
Looking at the following daily chart, the last time Bitcoin aimed to break above that level was at the beginning of June – a tryout that ended by a massive dump to $8600 (on BitMEX) just on the day after.
Today, it seems to be a different story. In my opinion, even though a correction is needed following this greenish week, the chances that Bitcoin had said goodbye to 4-digits prices are very high. This comes after consolidating around $9200 for over a month.
Once again, it was proved that when crypto twitter is bearish, the chances are with the bulls. This is the reason why the vast majority is almost always wrong.
Update: Bitcoin broke above the $10,500 benchmark, which was the 2020 high recorded during mid-February. As of writing these lines, Bitcoin marks the $11,000 resistance as the current daily high.
Despite the excitement, the daily candle needs to end above the $10,500 in order to confirm the bullish momentum.
Bitcoin’s Support and Resistance To Keep an Eye On
Following the breakout, Bitcoin eyes $11,000 as the closest resistance and the current daily high (and 2020 high). In case of a breakup, then $11,200 is the next level to keep an eye on, followed by the long-term ascending trend-line as can be seen on the following daily chart (currently lies around $11,600). Further above lies $12,000.
From below, the current level of $10,700 – $10,800 is the first support area, followed by the prior 2020 high at $10,500. Further down lies $10,200 and $10,000.
Lastly we must remember –
Because Bitcoin didn’t visit those areas for over a year now, we can expect things to happen a lot quicker now (but hey, there is still the 2020 high, remember?)
On the downside, despite the trading volume is slowly increasing, the massive volume levels that took place during May (surrounding the halving) are not here yet.
Total Market Cap: $318 billion
Bitcoin Market Cap: $199 billion
BTC Dominance Index: 62.7%
*Data by CoinGecko
BTC/USD BitStamp 1-Day Chart
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Cryptocurrency charts by TradingView.