Even as virus-induced instability shakes the stock market, bitcoin continues to thrive. At the time of writing bitcoin is trading at $13,712, giving it that juicy 4.8% gain for the day. Recent price action has marked a new 16-month high, a 25% up on the month and a 87% up on the year-to-date basis.
As bitcoin is above the 10- and 50-day moving averages, technicians see bullish signals. Bitcoin hit as high as $13,756 and has found support around $13.6k. It seems like bitcoin is gaining speed so should I mention the next resistance level or will it not matter in the next 24 hours?Bitcoin trading on Bitstamp since Oct. 25. Source: TradingView
Traders believe that the next resistance level to beat is $13,875. Why? Because bitcoin peaked at $13,970 in June of 2019 and even though this peak was achieved more than a year ago, it still serves as an important area for sellers. Another reason is that technical analysts say that the weekly candle chart of Bitcoin shows $13,875 as the next “logical resistance” Popular crypto trader Edward Morra said:“On high time frame chart this weekly level ~$13,875 is next logical resistance. It rejected 2019 rally pretty hard, second test will be less violent but I believe there will be a reaction. Taking out that ’19 high into weekly supply is one to watch for.”
For the bulls, the ideal scenario is for bitcoin to rise above $13,875 and remain there for some time. This type of stability would indicate a healthy reclaiming of a multi-year resistance level.
For the bears, if bitcoin’s price fakes out above $13.7k and drops back into the $13k-$13.2k range, deviation is confirmed by the bearish retest. Then it would retrace back to $12.5k and then possibly $11.6k.
Keeping Bitcoin Safe
Bullish sentiment continues as bitcoin is being moved from exchanges into secure wallets for a long-term hold. This was seen on Monday Oct. 26th as the total number of bitcoin held on exchanges fell to a two-year lo...