The visit to five figures throughout the end of the week was to a great extent expected for Bitcoin. A higher week by week candle however fortifies the thought that the meeting is genuine and more gains are not out of the ordinary.
Tapping a New 2020 High
Bitcoin prior hit another high for 2020 when it tapped $10,200. This has been its most significant expense since the spike in late October initiated by the Chinese president underwriting blockchain innovation.
Prior to that, it was last over $10k in late September so the most recent move denotes a four and a half month high. Since this meeting started in mid-December, Bitcoin has increased 54% as it wanders into five-figure an area by and by.
According to Tradingview.com, BTC is now trading well above both the 50-day and 200-day moving averages as the uptrend strengthens. The weekly candle is also interesting as it signals a new higher high which is another strong signal that the rally is real.
Bitcoin officially puts in higher high as the weekly closes above October’s lower high
Long term reversal in play
Back in October, the candle failed to close at its peak which indicates that FOMO was driving momentum from the Chinese effect. This time it is different as gains have been slow and steady resulting in a strong weekly close, the fourth one this year.
The $10k level is psychological as Bitcoin has spent so little time there. Popular cryptocurrency investor ‘Ceteris Paribus’ (@ceterispar1bus) pointed this out in a recent tweet:
While people in the mainstream believe the majority of Bitcoin investors have gotten rekt, keep in mind that it’s only traded above today’s price on 170 days, less than half a year.313:02 PM – Feb 9, 2020Twitter Ads info and privacySee Ceteris Paribus’s other Tweets
Where to Next for Bitcoin Prices?
Analysts are expecting further gains with ‘Cantering Clark’ (@CanteringClark) eyeing five greed days in a row and a move to $10,500. Naturally, a pullback back into the four-figure range is also expected following such a sustained move upwards.
“If I was climbing a rock wall I would want to constantly re-anchor. Same Idea with assets, build a base.”
5 green days +
Right at that 3M range POC and what was the most agreed upon fair value for that period.
I expect 10.5k but I also expect 9.5k again at some point.
If I was climbing a rock wall I would want to constantly re-anchor. Same Idea with assets, build a base. $BTC
The next level of resistance currently lies around $10,800, but beyond that, it could shoot up to $12k with very little in its path.
On the low side, $9,400 could prove to be a solid support region since BTC has spent several days there recently and in early November. Since Bitcoin is now at the higher Bollinger band on the weekly chart it could move back towards the middle before a further move higher.