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4 December 2021
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Bitcoin [BTC] Crosses $10,000 7th Time This Year, Is this the Real Deal?

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.

Willy Woo, leading on-chain analyst thinks it might be a real deal. He tweeted,

Alts frothy, ETH getting a DeFi tailwind, volatility returning, BTC mempool peaking, BTC txs clogging, this is all great signs for the months ahead.

gemini tradingview btcusd
BTC/USD 1-Day Chart Gemini (TradingView)

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.

Bitcoin-Gold (Blue) and Bitcoin-SPX (Grey) Correlation (Source)

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.

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