Bitcoin (BTC) Milestone, Trading Above a 5-Month Liquidation Line

Dalmas Ngetich

1 year ago

2 mins read

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Bitcoin price trading above $4,200
Crypto analyst places Bitcoin price at $55k after halving
Number of confirmed Bitcoin transactions surge to 383,186

With a market cap of $71.9 billion, Bitcoin (BTC) is trading in a bull breakout pattern above a five-month resistance line. That is a milestone and could ready bulls aiming at $6,000 now that OMC data reveals the level of Bitcoin (BTC) demand.

Bitcoin Price Analysis

Fundamentals

After Mar 28 surge in the number of confirmed Bitcoin transactions, it seems like the value-draining crypto winter is drawing to a close. It is precisely what the community anticipates now that prices, despite the last three-four days revival, are down 75 percent from late 2017 highs.

By yesterday’s close, there were 383,186 confirmed BTC transactions, the highest year-on-year reading, gifting Bitcoin a market cap of $71.9 billion and decent daily trading volumes of around $1.05 billion according to reliable statistics from Open Market Cap. Even so, traders are apprehensive, and the failure of buyers to breach the $4,500 mark could pour cold water on developing momentum forcing prices to crumble.

Otherwise, any firm close above $4,500 could have an amplifying effect and could drive prices higher towards the $55,000 mark as Bitcoin market cap breach the $1 trillion according to PlanB’s model.

#bitcoin path to $1.000.000.
Model based on stock-to-flow (SF). Note the powerlaw relationship: SF2x=Price10x is constant, over 8 orders of magnitude, with 95% R2. pic.twitter.com/sgIRzDyi4q

— PlanB (@100trillionUSD) March 5, 2019

Candlestick Arrangement

As laid out in our previous BTC/USD trade plan, prices are trading within a bear breakout pattern with our level of interest at $6,000. It is a breakout mark, previous support and now our first target as well as a resistance level.

Not only is it a strong liquidator but before Nov-2018 slide, the $6,000 was a strong support line. Therefore, before $6,000 there must be strong surges above $4,500, a minor resistance level and the upper limit of our $1,300 with bases at $3,200—or Dec 2018 lows.

Interestingly, there is movement. From the chart, Bitcoin bulls have managed to breach a one-year resistance level in a very bullish move. If confirmed next week then for the first time in five months, there would be development towards reversing steep losses of the week ending Nov 23.

Technical Indicator

From the above, it’s clear that the trend is clear and Bitcoin, after heavy losses, is bouncing back. However, before we make conclude that bulls are firmly in charge, increasing demand in lower time frames should drive prices from $4,200—or Mar 16 highs. After that, the bullish breakout bar above $4,500 must have high volumes preferably above 434k.

Chart courtesy of Trading View

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.