Tanya Abrosimova
Independent Analyst
- BTC/USD is consolidating gains above $10,000.
- If the bullish breakthrough is sustained, BTC may start skyrocketing.
Bitcoin (BTC) settled at $10,125 after a head-spinning rally to $10,412 during late hours on Monday. The first digital asset has gained over 5% on a day-to-day basis, though it is mostly unchanged since the beginning of Tuesday. Bitcoin’s market capitalization surpassed $186 billion, while its market share decreased to 65.3% as some altcoins, like NEO and Stellar registered double-digit growth.
If the history of any guide, BTC/USD may be on the verge on a strong rally towards new annual high, provided that a move above $10,000 is sustained within the recent days. The Bloomberg Galaxy Crypto Index, which is based on the largest digital tokens, broke above a critical juncture at the 400 that served both as a resistance and the support since March. A break above this level could create a pre-condition for a new bullish trend.
Cryptocurrencies have weathered the panic-selling storm that took place in March and seem poised to benefit from a wide-range of growing institutional interest. It is not just Bitcoin that is attracting interest -- alternative coins such as Ether and Bitcoin Cash seem to have bigger upside potential, Edward Moya, senior market analyst at Oanda, commented as cited by Bloomberg.
BTC/USD: Technical picture
BTC/USD broke the upper line of the recent triangle pattern, which is typically a bullish signal. The next important resistance comes at Monday’s high at $10,412. Once it is out of the way, the upside is likely to gain traction with the next focus on the annual high at $10,511.
On the downside, the support is created by $10,000. Now that this pivotal point flipped from the resistance into the support, the sellers may have a hard time pushing the price lower. If it is broken, the next barrier of $9,600 will come into view. Most likely, this area will attract new buyers and stop the sell-off.
BTC/USD daily chart
-637266933184483106.png)
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
TRON gains 10% in 2024, supply of stablecoins reaches over $50 billion in Q1
TRON, a blockchain-based digital platform, has seen positive growth in the first quarter of 2024, as seen in a Messari report. TRON noted gains across several metrics like market capitalization, revenue and total value locked.
XRP hovers near $0.50 as Ripple CTO addresses concerns related to stablecoin launch
XRP is hovering near $0.53 on Friday, spending nearly all week below $0.55. Ripple CTO David Schwartz addressed concerns on stablecoin and XRP utility on Thursday.
Terraform Labs set to restrict access for users in the US after recent ruling in SEC lawsuit
Blockchain company Terraform Labs said Thursday that it will restrict access to some of its products and services for US-based users as it expects to receive a court order soon in light of its legal battle against the US Securities and Exchange Commission (SEC).
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.