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This weekend has been nothing short of monumental for Bitcoin. Over the past two days the king of crypto has surged almost 15 percent to its highest price for 15 months. The big question now is will it carry on brushing resistance aside or is a pullback imminent?
Over the past 24 hours Bitcoin reached the giddy heights of $11,250, its highest price since March 2018. Market dominance is close to 60 percent as the altcoins remain frozen over, many still down over 80 percent from their peaks. Daily volume topped out at $30 billion as BTC market capitalization touched $200 billion, but has the wave of FOMO crashed onto the shore?
Bitcoin Breather Beginning?
As in previous pumps, traders and analysts have been scouring the charts looking for resistance zones where Bitcoin may possibly halt its epic run. $10k was a huge psychological barrier that was blown away within a couple of hours when BTC surged to $10,900 on Saturday.
The next key resistance level is around $12k where BTC touched on its way down in early 2018. Trader ‘CryptoFibonacci’ has looked at the long term chart to ascertain if and where Bitcoin may take a breather.
“Price is getting to an area where one would suggest we take a breather. But, BTC has a mind of its own, so we shall see. If you have profits, I would suggest taking some off the table the closer we get to 11,500-11.800 area, IMO.”
$BTC Weekly Chart.
Price is getting to an area where one would suggest we take a breather. But, BTC has a mind of its own, so we shall see. If you have profits, I would suggest taking some off the table the closer we get to 11,500-11.800 area, IMO.#BTC pic.twitter.com/Yvesi7UD47
— CryptoFibonacci (@CryptoFib) June 23, 2019
Other long term technical indicators are all indicating bullish momentum for Bitcoin so a correction would not be a bad thing. Economist, Alex Krüger, notes that trends are all one way at the moment;
“”The trend is your friend”. Returns and sharpe ratios for $BTC longs taken above the various moving averages are significantly superior than for longs taken below the moving averages. This is particularly relevant for trending assets such as bitcoin.”
The CME futures chart is starting to show some ominous gaps which is an indication that the current bull run could be running out of steam. CryptoFib added;
“They are open now and we have yet another gap. Not surprised based on the weekend move. But, look how far price is outside of the upper Bollinger Band. That is No go for new longs for me. Time to take a few off the table, IMO.”
$BTC Daily CME Futures Chart.
They are open now and we have yet another gap. Not surprised based on the weekend move. But, look how far price is outside of the upper Bollinger Band. That is No go for new longs for me. Time to take a few off the table, IMO.#BTC pic.twitter.com/UVhbYvowy1
— CryptoFibonacci (@CryptoFib) June 23, 2019
Analysts have been wrong in the past when they predicted 30 percent pullbacks at $6k, $8k and again at $10k. Now that Bitcoin has breached $11k the correction calls are getting stronger so it has to take a breather sooner or later.
Image from Shutterstock
