Bitcoin [BTC] crosses 10,000 again and investors are becoming apprehensive if this time the continuation will lead towards previous highs in 2019 and 2017 at $14,000 and $20,000. Not only Bitcoin but Ethereum also recorded its’ yearly high at $321 in price with over 30% rise.
Alts frothy, ETH getting a DeFi tailwind, volatility returning, BTC mempool peaking, BTC txs clogging, this is all great signs for the months ahead.
A technical analysis viewpoint suggests that consolidation above $9,700 range is critical. Tyler D. Coates, a crypto trader and analyst tweeted
If we can support $9,600 – $9,700 over then next couple days then it could lead to a very familiar fractal…
A 1h Phase 3 that breaks through $10K, followed by a sharp Phase 4 that squeezes out shorts sure seems like a good way to break out of this range.
The surge in gold and silver prices during the week comes as a positive reinforcement for Bitcoin as well.
However, the stronger correlation with the stock market is still a reason to worry because of the rise unemployment rate and the global economic recessions due to the coronavirus lockdown. Nevertheless, the SPX index continues to battle resistance from the pre-COVID highs, the break-out in silver, gold and now Bitcoin is highly reassuring.Advertisement
The next level of resistance for the Bitcoin [BTC] bulls is around previous highs in the $10,500-10,600 range.