The price of Bitcoin (BTC) reached $10,956 on BitMEX, officially surpassing $10,900 for the first time since 2019. It has broken out of a multi-year trendline, dating back to 2017.
Traders and technical analysts are generally optimistic toward the breakout of Bitcoin. The rapid upsurge from $9,933 to $10,956 on a single day officially eliminated the chance of a triple top forming.
The term triple top refers to three consecutive peaks at a similar level. Until its recent breakout above $10,500, BTC was at risk of seeing the dreaded technical pattern.
Overall Optimism In The Cryptocurrency Market
The price of Bitcoin was stuck in a two-month range since May, struggling to see much volatility. It remained relatively stagnant in the $9,000 to $9,500 range, consolidating under the $10,500 resistance level.
But when an asset consolidates under an important resistance level for a prolonged period, it raises the likelihood of a breakout.
Following Bitcoin’s abrupt increase to $10,900, traders, investors, and technical analysts responded positively.
Barry Silbert, the CEO of Grayscale and major crypto VC firm DCG, said the next resistance for Bitcoin is at $13,000.
Rafael Schultze-Kraft, the chief technical officer at Glassnode, shared a chart which shows low resistance or selling pressure above $10,900. That could indicate that the recent upsurge was a critical breakout to sustain the momentum of Bitcoin.
What Is To Come In The Future?
Investors appear to be expecting two things following the strong Bitcoin rally. First, some investors anticipate alternative cryptocurrencies to underperform. Second, market research firms foresee a room for a bigger rally, based on strong fundamentals.
Ari Paul, the CIO at BlockTower Capital, explained prior to the rally:
“A big part of altcoins rallying for the last few months has been BTC in a tight range. IMO, most alts likely to underperform BTC if it breaks out in either direction.
As the momentum around Bitcoin continues to build, Glassnode researchers emphasized that on-chain fundamentals of Bitcoin are only strengthening. They said:
“With BTC breaking $10k and on-chain fundamentals growing stronger, Bitcoin hit one of its highest GNI scores this year – pushing deeper into the bullish regime.”
But in the near-term, cryptocurrency trader Scott Melker explained that Bitcoin has to close above the $10,500 level at a higher time frame. A close of the daily candle above it would confirm a proper rally. He wrote:
“Bitcoin just made a macro higher high for the first time in a year. I like to wait until a candle closes for confirmation, because a close below that red line would be an epic bearish SFP. Today is the moment of truth.”
While some traders are seemingly taking caution at a big resistance area, other investors and on-chain market researchers foresee a stronger rally ahead.