Bitcoin (BTC) soared above $10,000 on July 27 and has sustained above this level since then. Data shows that this streak of 63 consecutive days of closes above the $10,000 level is a new record.
This also shows that the level has now become a strong support after previously acting as a stiff resistance. Bulls have consistently purchased dips to and below $10K and this psychologically important level may now act as a floor for launching the next leg of the uptrend.
Daily cryptocurrency market performance. Source: Coin360
At the moment it seems that the monetary and fiscal stimulus measures unleashed across the globe have increased the allure of cryptocurrencies as investors look for alternative investment opportunities to safeguard their portfolio from the debasing of fiat currencies.
With less than 2.5 million Bitcoin left to be mined, the scarcity factor could soon come into play as demand from institutional investors picks up.
After weeks of downside price action and short periods of consolidation, can Bitcoin and altcoins build upon the bullishness of the past few days to resume the uptrend?
Let’s analyze the charts to find out.BTC/USD
Bitcoin is currently range-bound between the uptrend line and the overhead resistance at $11,178. The flat moving averages and the relative strength index just above the midpoint suggest a few days of consolidation.
BTC/USD daily chart. Source: TradingView
The bears will mount a stiff resistance in the zone between the 50-day simple moving average ($11,097) and the downtrend line. If the price turns down from either resistance, the bears will try to sink the price below the uptrend line.
If they succeed, the BTC/USD pair can drop to the critical support at $9,835. The selling could intensify if this critical support breaks down.
However, during the next dip, if the pair rebounds off the uptrend line, the bulls will make one more attempt to push th...