After a small correction yesterday afternoon, bitcoin (BTC) continues the way up. The bulls don’t seem to care about the Binance hack and keep pushing up the price. Many analysts now expect bitcoin to reach $ 6,400, but why is this price level so important?
At the time of writing, bitcoin (BTC) is worth $ 6,287 on Coinbase after rising 2.2% in the last 24 hours. Given the momentum, the crypto-analyst “The Crypto Monk” expects the uptrend to continue:
More than half of my feed is still about shorting $ BTC in a strong uptrend. $ 6.4k here we go. pic.twitter.com/qj95XvYZZH
– The Crypto Monk (@ thecryptomonk) May 9, 2019
The $ 6,400 is important for traders and analysts because the price traded long above this price level during 2018. The price level would have been a break-even point for miners to be profitable. On the weekly chart, virtually no candles closed below this price level, and it took the exchange rate months to finally fall below this level. This support will therefore now offer considerable resistance, should the price reach this level. Analyst Josh Rager calls this resistance “the most epic resistance”.
Another analyst, Crypto Thies, points to a number of technical indicators that would indicate that the trend will continue. One of those technical indicators is the relative strength index (RSI). It recently broke the 80 on the 3 daily and daily graphs. This value is actually only achieved in bull markets, which is therefore a positive signal. However, a high RSI value also indicates overbought conditions, which means that corrections may occur.
Another technical indicator that Crypto Thies is looking at is a trend indicator which is also called “Market God”. This indicator now gives a buy signal, something it has not done since March, just before the April price rally.
Another analyst recently posted an interesting analysis on Tradingview. The analyst, TradingShot, sees similarities between the gold rate and bitcoin. However, here he compares the gold rate on the monthly chart with bitcoin on the daily chart. What struck him there was that the price fluctuations were very similar.
The value of gold, for example, rose to great heights after a long period of trading in a sideways trend. Bitcoin would now be at the same point, after which it could also rise to great heights. According to TradingShot, bitcoin could be worth $ 10,000 in July if this analysis was somewhat correct.
There are countless ways to analyze the bitcoin rate. However, one thing is certain: most analysts agree that bitcoin seems to be turning into a long-term rising trend at the moment. However, there are also analysts who expect a possible downward correction, but they also expect that the price will go up in the longer term. It remains to be seen at this moment whether bitcoin will reach $ 6,400, and if that succeeds, whether the bulls will be able to push the price through this price level.