Bitcoin bulls in the Far East will take credit today for finally pushing Bitcoin above the key resistance levels of USD 13,000, when an increasing volume of trading nudged the pulsating market into a territory it has only briefly held during this entire year.
Since 10:00 am Beijing time (2:00 am UTC), Bitcoin has been trading at feverish levels — reaching over BTC 10,000 (USD 13 million) in an hour at just around 4:am UTC, according to data from Bitcoinity. Coinbase, Bitfinex, Kraken and Bithumb were the usual suspects, each registering over USD 1 million in hourly Bitcoin trading volumes to push Bitcoin to a daily high of USD 13,144, up over 8% from a day ago. Right now, it is settling at around USD 13,013 at 1:00 pm UTC (CoinDesk).
Following Monday’s difficulty in establishing an upside, Bitcoin now seems to be following a very slight breakout sign, with increased momentum and accompanied by firm volumes. However, unlike the last time this year it broke USD 13,000 it did not reach as high, nor did it immediately bounce back. This does mean that while USD 13,000 is a barrier, Bitcoin looks to hold above for now, even as North American markets take over.
There was still quite a bit of difficulty observed from the past two days around the mid USD 12,500 zone, and, as BitcoinNews.com’s technical analyst Peter Oleschuk pointed out, “we regard the current growth as a correctional wave before continuing to fall to USD 11,500”.
It is, nevertheless, incredibly good news for the bulls and a strong indication of further positivism for the week ahead to see Bitcoin record steady gains for consecutive days, right on the back of a bad start for July. While some may believe that the next attack should be for the current 2019 high of USD 13,800, even the hopeful speculators will understand the need to wait and consolidate above these current levels for at least a week, before a clear pattern for movement and price action can be established.
German crypto and Bitcoin analyst posted an article that attempted to explain the 30% increase in over a week for Bitcoin, which summarized that the foundation of the crypto rally is strengthened by Bitcoin’s continuous recoveries, backed by fundamental catalysts of investment vehicles and futures markets.
$13,000: Bitcoin Price Gains 30% in 8-Day Jump; Whats Behind the Recovery? https://t.co/JJCkBAhJcQ
— Hans-Jürgen Johst (@HJuergen39) July 10, 2019
Unlike the weekly Relative Strength Index (RSI) that earlier signaled slightly overbought regions, RSI and even Moving Average Convergence Divergence (MACD) are cluing in now on the bulls, and the break above USD 12,900 does seem to pave the way for even farther gains today. Some analysts certainly think so:
Bitcoin price prediction: BTC/USD on the verge of a new breakout – Bitcoin confluence https://t.co/1Q8IM0DdUr#bitcoin #crypto #blockchain #btc #news #cryptocurrency pic.twitter.com/C4hdTdUgAf #eth #ltc #xrp
— Bitcoin update (@btc_update) July 10, 2019
All these price actions have taken place against less-than-positive news elsewhere in the Bitcoin industry. Several times now touted as the savior of the economy in the Republic of Iran where citizens are using Bitcoin to circumvent US sanctions against the country, news is now emerging that state officials have seized around 1,000 mining rigs from 2 mining farms in abandoned factories, with a central bank representative apparently saying Bitcoin sale and purchase is now banned due to legal uncertainties and excessive volatility.
Local news agency Tasnim quoted Central Bank of Iran’s deputy governor for new technologies, Nasser Hakimi, as warning people to stay away from “pyramid style network companies that promote Bitcoin like a tree with gold coins in the Adventures of Pinocchio”.
Strange comparisons to be made, nevertheless, it could spell short-term bad news for Iranians, although the rest of the world does not seem to be too perturbed, judging from the volumes of trade of late.
As Bitcoin now marks its fifth straight day of gains, it is altcoins who are wilting under the digital asset’s heat, with an absolute sea of red summarizing the performance of the Top 20 altcoins by market capitalization. Only Tezos in the Top 30 is registering any profit (7%) but that still pales in comparison with Bitcoin’s past week.
Of the three major alts below Bitcoin, Ethereum (ETH) has been struggling to keep pace but has so far held on above USD 300, Ripple (XRP) simply cannot find a way to break USD 0.40, while Litecoin (LTC) has now slipped below USD 120 after pricing ins of its halving event lost their effect.
Together, they concede further ground to Bitcoin in terms of market dominance, with BTC now achieving 65.2% of the market share (CoinMarketCap).
as the $BTC Dominance will continue growing. Moreover, any Technical Analysis don’t work on Altcoins at the moment. If you are an Altcoin trader, I advise you to take only Short-Term trades which are based on Fundamental Aspects and place tight Stop Losses.
— blockchain whispers (@BLOCKCHAIN_BW) July 10, 2019
With the market going as it is, some are even giving up on technical analysis, saying:
“any Technical Analysis don’t work on Altcoins at the moment. If you are an Altcoin trader, I advise you to take only Short-Term trades which are based on Fundamental Aspects and place tight Stop Losses.”
Of course, every coin has its hodler, and some obstinately believe that Bitcoin’s major issue remains scalability, and that is their reason for believing in alts, which generally have faster transaction times than Bitcoin, albeit at far lower security metrics like hash power.
Image Courtesy: Unsplash