Bitcoin’s price exceeded $ 11,400 for the third time in three days, breaking a critical resistance level. The presence, BTC price reached USD 11,444. but it quickly returned to the $ 11,250 range.
Surprisingly The price has risen above the $ 11,400 mark again in the last hour, and some traders believe that repeated resistance tests could increase the likelihood of an outbreak.
Kelvin Koh from, Spartan Group, said If BTC breaks out of $ 11,400, it is very likely to hit $ 12,000. Meanwhile, the analyst and chain dealer, Willy Woo, said Bitcoin’s $ 11,000 run could place BTC at the beginning of a “bullish phase”.
Bitcoin price 1 hour chart. Source: TradingView.com
After rising to $ 11,470 on BitMEX, the price of Bitcoin dropped to around $ 11,260. The current resistance range is from $ 11,200 to $ 11,400 apparently it is causing Sellers defend this level and avoid a major breakout.
Investors are optimistic about the possibility of a bullish bull run
On June 27, the Bitcoin chain analyst and trader Willy Woo unveiled a new pricing model for BTC. This model suggests that a new bull run is being brewed for the best cryptocurrency. At that time woo said::
“This is a new model I’m working on. It starts with exponential bull runs. 1) Bitcoin prepared for a bull run until the white swan from COVID ruined the party. 2) This model suggests that we are one approaching another bull run. Maybe in another month. “
Bitcoin price weekly chart with new pricing model. Source: Willy Woo
It’s been a month since the model was unveiled and Bitcoin’s price rose from $ 9,100 to over $ 11,000. After the introduction of this model, Woo said he was “relatively confident” that the bullish phase is beginning.
The analyst has broken down several data points in the chain, including Bitcoin’s Mempool and Relative Strength Index (RSI) to assess market cycles. Woo said the RSI chain specifically suggests this The main bull market could start in the fourth quarter.
Courting explained as:
“With the current 11K breakout, I am relatively confident that the model of the past few months has been in a queue. We are at the beginning of the ‘bullish main phase’ … the 365-day chain RSI shows a compression at The initial phase the bull cycle is nearing its end. I’m looking forward to the RSI expansion, which is typical of the main bull running season, which begins in the fourth quarter of 2020 to 2021. “
In the same way, Koh said if Bitcoin’s price continues to rise above $ 11,400, it will keep its momentum. However, should BTC continue to recover, the investor emphasized that altcoins could consolidate. Koh said::
“If BTC breaks the resistance at $ 11.4,000, we will break $ 12,000 in no time. It will take your breath off altcoins in the short term.”
Before BTC exceeds $ 12,500, sentiment is not so optimistic
According to the chief investment officer of ExoAlpha, David Lifchitz, Withdrawal of profits from powerful DeFi tokens led to an increase in BTC and Ether (ETH). The initial increase then led for processing short contracts on futures exchanges.
When Bitcoin started its run DeFi tokens and other major altcoins began to fall in price, which reinforced this argument. Assets like Compound, Chainlink and Cardano, which outperformed BTC in June, have stagnated in recent days.
Lifchitz he said to Cointelegraph:
“The recent move in BTC-USD appears to be linked to the withdrawal of profits from DeFi currencies towards the majors (Bitcoin and Ethereum), which triggered a small compression of the over-the-top shorts at the BitMEX casino.”
Lifchitz said that in the short term A retreat could occur as the market cools, but if BTC breaks above $ 12,500 and stays on top, a bull market could emerge. Lifchitz said:
“Basically, Bitcoin’s rise seems to be driven by rotation and devaluation of the USD rather than a real interest in the currency, but if BTC reaches and stays above USD 12,500 (i.e. the July maximum of 2019) change the narrative. In the short term, there could be a slight retreat that would be healthy from here before starting a new run at $ 12,500. “
Overall, traders and chain analysts remain optimistic after Bitcoin’s relatively fast rally over $ 11,000.
There is a risk of retreat as the futures market overheats with high refinancing rates, but sentiment seems to be improving and BTC is repeatedly testing an important USD 11,400 resistance level.