For the third time in three days, the price of bitcoin has exceeded $ 11,400, above the critical resistance level. Earlier in the day, BTC struck $ 11,444, but quickly refused to return to the $ 11,250 range.
Surprisingly, the last hour has risen above the $ 11,400 mark, and some traders believe that trying the resistance again may increase the chances of an outbreak.
Calvin Ko of the Spartan Group said that when he breaks the BTC from $ 11,400, it will probably increase to $ 12,000. Meanwhile, analyst and network trader Willie Wu said that bitcoin conventions over $ 11,000 could put bitcoin at the beginning of a “big bull phase.”
After BitMEX rose to $ 10,470, the price of Bitcoin fell to around $ 11,260. Opposition is currently hovering between $ 11,200 and $ 11,400, clearly pushing sellers to defend this level and prevent a significant outbreak.
Investors are optimistic about the possibility of Bitcoin growth
On June 27, Serial Analyst and Bitcoin Willy Woo introduced a new pricing model for BTC. The model suggests that it is a new bull for the highest cryptocurrency in the fermentation phase. At the time, Wu said:
“This is a new paradigm that I am working on, and he decided to start accelerating revolutionary rounds. 1) Bitcoin prepared for the upward round until the white swan killed the party. 2) This pattern shows that we are close to another bullish trend. Maybe another month. ”
A month has passed since the model appeared and the price of Bitcoin has risen from $ 9,100 to $ 11,000. Continuing this pattern, Wu said he was “relatively safe” in the underlying bull phase.
To measure market cycles, the analyst detailed several data in this series, including Bitcoin's Mempool and Relative Strength Index (RSI). Wu said that the RSI especially for the series indicates that a large beef market could start in the fourth quarter.
Wu explained that:
With the current break of 11K, I am relatively sure that the pattern in recent months is on the waiting list, we are at the beginning of the “main scene” … RSI in the chain for 365 days shows pressure in the beginning I reckon that in the the Hausa phase, which is almost complete, the relative strength index of the main bull season will increase from the fourth quarter of 2020 to 2021. ”
Similarly, Ko said that if the price of Bitcoin continues to rise above $ 11,400, it will maintain its momentum. But if BTC continues to rise, the investor has assured that alternative digital currencies can hold. Ko sa:
“If BTC overcomes the $ 11,400 resistance, we will exceed $ 12,000. Always. In the short term, the wind will come out of alternative currencies again. ”
Before BTC peaked at $ 12,500, sentiment was not very optimistic
According to ExoAlpha's CEO David Levschitz, profiting from well-executed DeFi codes has driven the growth of BTC and Ether (ETH). At that time, the initial growth led to the elimination of short-term contracts on the futures exchange.
As Bitcoin began to rise, DeFi codes and other alternative cryptocurrencies began to decline, reinforcing the argument. The assets of companies such as Composite, Chainlink and Cardano, which surpassed BTC in June, have remained flat in recent days.
Lifshitz told Cointelegraph:
“It looks like the recent move in BTC-USD was due to the surplus from the DeFi currencies entering the major currencies (Bitcoin and Ethereum), resulting in a short squeeze of imposed shorts at BitMEX Casino.”
In the short term, Lifshits said that a setback could occur when the market calms down, but if BTC exceeds $ 12,500 and stays above that, a bull market could emerge. Lifshits sa:
So basically the Bitcoin rally seems to be driven by fluctuating and weakening US dollars more than interest in real currency, but if the BTC price reaches and stays above $ 12,500 (ie the boom years in July 2019), it can change the story. In the short term it may be. There is a small withdrawal in the process, which will be healthy from here until a new round starts up to $ 12,500. ”
Overall, traders and network analysts remain positive after Bitcoin relatively quickly rose above $ 11,000.
There are some drawbacks to the fact that the futures market is heating up with higher financing rates, but sentiment seems to be improving, and as a result, BTC is repeatedly testing the biggest resistance at $ 11,400.