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Bitcoin jumped 5% to move above $10,000 levels for the first time since June 3. Investors are closely observing the next resistance of $10,500 above which Bitcoin can set a new bull trend.
Bitcoin price shows major momentum in the last 24 hours moving past $10,000 levels for the first time since June. At press time, BTC price has surged 5.47% and trading at $10,227 with a market cap of $188 billion.
It nearly more than 50-days since Bitcoin crossed $10,000 levels. The last time it did was on June 3 and since then it was seeing a steady decline until last week. In last week, Bitcoin regained surging 11% and eyes another major resistant at $10,500.
The $10,500 levels are much important for the world’s largest cryptocurrency to set a bullish trend. In 2020 itself Bitcoin has crossed $10,000 levels three times but failed to move past $10,500. The last two moves above $10,000 were supported by high volumes. Hence the traders should have a close watch on the buy and sell volumes to determine the price trend ahead.
In the event of a pullback, Bitcoin will first drop to $10,100 levels and next to another support of $9800-$9900. Vijay Ayyar who heads the business development at crypto exchange Luno said that large players were debating to offload their Bitcoin to small entrants and push the price lower. Speaking to CNBC, he said:
“This doesn’t seem to have happened. What we have unfolding is potentially re-accumulation by big players, joined by smaller traders in an attempt to push BTC higher past 10K and more past 10.5K, which is the big resistance level, where BTC last put in a high. We still haven’t broken the 10.5K level, if that happens, BTC is probably running to 15K. All signs point to that at this point.”
Bitcoin Moving to Higher Levels
Many big analysts earlier said that Bitcoin can work as a Digital Gold and a potential hedge to the stock market. However, Bitcoin failed to exhibit this trend during the market crash of March 2020. Bitcoin and the entire crypto market collapsed along with the stock market this March.
On the other hand, physical gold continued to ebxhibit the status of being a safe-haven investment. The price of physical gold has hit a new record high on Monday. To fight the economic havoc created by the coronavirus pandemic, global government institutions have come forward announcing massive relief packages. Ayyar thinks that Bitcoin can benefit from this stimulus measures and developments in the COVID-19 vaccine. He said:
“My view is that with the major governments declaring unprecedented stimulus packages … we will see continued bullish momentum across markets. So that includes equities and gold as well. And BTC and crypto will follow on this regard. Added to the fact that a vaccine seems within reach as well now, no reason to be bearish near term”.
Along with Bitcoin, the world’s second-largest cryptocurrency Ethereum (ETH) is also making big moves. The surge in the DeFi activity on the Ethereum platform has recently pushed the cryptocurrency price above $300. At press time, Ethereum is trading at a price of $321.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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