Bitcoin has risen above $10,000 for the first time in almost a month as protests in U.S. cities continue to intensify.
At around 23:05 UTC (7:05 p.m. Eastern Time), bitcoin (BTC) rose from $9,895 to around $10,429 over the course of 30 minutes as a new wave of volatility greeted the end of the daily closing period for June 1.
The large spike in BTC’s price comes as violence erupts on the sixth day of protests over the death of George Floyd at the hands of Minneapolis police. BTC has since cooled slightly and is currently changing hands for around $10,191, according to CoinDesk’s Bitcoin Price Index.
BTC’s price action was equally matched by a large injection of daily trading volume on the Bitstamp and Binance exchanges.
Meanwhile, Coinbase suffered a temporary outage that had been resolved as of press time.
Bitcoin has been gyrating between $8,600 and $10,000 for a period of around 32 days and finally broke above the $10,000 psychological resistance in convincing fashion as traders sought to capitalize on a bullish technical setup.
“ETH broke out already, BTC now having its turn,” said Joshua Green, chief investment officer at Orthogonal Trading.
“The macro and fundamental scenario is very bullish, and the market has been shorting into $10,000, under-allocated above $10,000,” Green added.
Other notable cryptos are also having their time in the sun with the likes of eos (EOS), cardano (ADA), bitcoin cash (BCH) and litecoin (LTC) having climbed around 5% over a 24-hour period.
Bitcoin Is Breaking Out
Bitcoin is back in the green as it breaks through the infamous $10,000 resistance level. If price history repeats itself, then the flagship cryptocurrency could be poised for an upswing towards $12,500.
Since March’s Black Thursday, Bitcoin’s price action has been contained within an ascending parallel channel. Each time BTC surges to the upper boundary of this channel, it pulls back to hit the lower boundary, and from this point, it bounces back up again.
After the most recent rebound from the bottom of the channel, it seems like the bulls have stepped in. Now, one could expect a further advance to the middle or upper boundary of the channel.
IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model suggests that a full-blown rally to the top of the channel is most likely to happen. Based on this on-chain metric, there are not any significant barriers above the current price levels that would prevent a bullish impulse.
On the flip side, the IOMAP cohorts reveal that there are enough supply walls to absorb any downward pressure. Especially the one between $9,270 and $9,580, where roughly 1.6 million addresses hold over 1.2 million BTC purchased at these prices.
Source : coindesk.com
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