Bitcoin price set a new 2020 high after the price surged through the multi-year resistance level at 10,500. Bitcoin (BTC)
price rallied within $50 of the $11,000 mark after managing a strong
breakout above the $10,500 level. For the past 6 months analysts have
kept a laser sharp focus on the key level and many forecast that Bitcoin
price would soar once the multi-year resistance was obliterated.
Crypto market weekly price chart. Source: Coin360
Cointelegraph contributor Keith Wareing suggested that Bitcoin price could rapidly move higher as traders’ sentiment will have grown increasingly bullish after the long-term resistance level becomes a new support.
BTC/USD daily chart. Source: TradingView
As
the 1-hour chart shows, Bitcoin’s recent surge above the long-term
descending trendline from the 2017 all-time high, and today’s move above
$10,500 were fueled by high volume spikes.
At the time of
writing, the moving average convergence divergence and the relative
strength index are both in overbought territory, showing bulls are
currently in full control.
Typically and overbought RSI and MACD
serve as sell signals but Bitcoin’s price history over the years
demonstrates that both oscillators can remain deeply oversold as the
price surges to new highs.
As mentioned in yesterday’s
Cointelegraph market update, Bitcoin has rallied nearly 20% since July
21 and this strong move has occurred without a significant retest of the
former S/R flips.
Traders should keep a close eye on trading
volume on the smaller time frames as a steep drop off in buy volume
could possibly lead to a retest of the $9,500 level.
Bitcoin daily price chart. Source: Coin360
According to CoinMarketCap, the overall cryptocurrency market cap now stands at $316.4 billion. Bitcoin’s dominance index currently at 62.8%.
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source link : https://cointelegraph.com/news/bitcoin-price-finally-snaps-multi-year-downtrend-but-is-20k-now-possible
