The price of Bitcoin (BTC) has exceeded $ 11,600 for the first time in 12 months, which is due to rising market sentiment. With the BTC / USD pair showing strong momentum, investors believe there is little resistance up to $ 15,000.
Daily snapshot of the cryptocurrency market. Source: Coin360
The price of Bitcoin on BitMEX rose to $ 11,763 in a sudden price move over the weekend. It also “filled” the CME futures gap at around $ 11,630, which generally does not occur on weekends.
Low resistance between $ 12,000 and $ 15,000
Kyle Davis, co-founder of Three Arrows Capital, suggests this The weekend price campaign has not even started. Indicates that there is less resistance between $ 12,000 and $ 15,000. Davis said::
“The crazy thing is that the move didn’t start at the weekend. How much resistance is there at $ 12-15,000?
Bitcoin’s weekly chart shows that there has been a lack of price movements between $ 12,000 and $ 15,000 in the past. The last time BTC exceeded $ 11,600 was in mid-2019 when it rose to a multi-year high of $ 14,000 before being declined.
Bitcoin’s daily chart with a clear level of resistance. Source: TradingView.com
It’s also worth noting that within two weeks of reaching $ 11,600, Bitcoin’s price rose to a record high in 2017.
According to Michael van de Poppe, Bitcoin’s market structure at $ 11,400 would continue to be convincing. Stability above the USD 11,400 level would show that it is a support level. Van de Poppe said::
Yes, $ 11,200 broke and canceled support -> $ 11,500 to $ 11,700 testing and the CME gap has been closed. A side note; Corrected EUR / USD. I think gold, silver and $ BTC will do the same. Crucial threshold? Hold $ 11,400. “
What is behind the Bitcoin rally?
At the same time, Skew data shows that with this bitcoin surge, less than $ 20 million was traded in futures contracts. If the BTC price movement is driven by the futures market, this often leads to high residual items.
The small number of settlements on the futures market suggests that the spot and options markets are likely to catalyze the recovery. When the bitcoin futures market warms less, it leads to a more stable and fundamentally strong upward cycle that some leading analysts claim is starting now.
In a higher timeframe, a pseudonymous trader named “Rookie” said the monthly Bitcoin and Ethereum candles mark an upward trend. The coincidence of a favorable macro market structure and a neutral futures market could maintain the momentum of BTC. The dealer said::
“Both the monthly BTC and ETH candles essentially closed at their highest points of the month. DO NOT soak up. That is bullish. “
Short term, Bitcoin’s biggest hurdle is whether it can defend the highest level of $ 11,400 as a support area. Traders generally remain positive as BTC begins to break through and outperform alternative cryptocurrencies.