Bitcoin price has risen above $ 10,100, what is waiting for BTC ahead?
At press time, the Bitcoin price has risen more than $ 10,120, up more than 7% in the past 24 hours. At the moment, Bitcoin is well-positioned to raise rates further, breaking the downtrend for the past year.
Will quarter II 2020 be the growth quarter for Bitcoin?
For the first time in September 2019, the Bitcoin price just reached overvalued status. After raising over $ 10,000, Bitcoin needs to be aware of facing resistance that extends above $ 10,000. If it fails, it will be in trouble for $ 9,700 and will likely drop to $ 9,300 before buyers step up and push Bitcoin higher.
One factor that could help Bitcoin surpass this resistance is the fact that it is currently in the process of breaking down the descending resistance that has been formed and respected in the time since it reached a high of $ 13,800 on last June.
Moreover, the following macro chart of CRYPTO₿IRB has also alluded to the fact that its ongoing break above this line is bullish.
that’s not how bearish charts look like pic.twitter.com/EYvlKz0LrI
— CRYPTO₿IRB (@crypto_birb) May 28, 2020
Meanwhile, the developer TraderXO explained that Bitcoin is following a similar pre-rally price pattern to that seen in 2015.
Q2 has historically seen price rally
Q3 has more often than not seen price print a corrective leg
21 Weekly EMA is key
Break below the 21 w-ema = corrective pullback / leg similar to that of 2015 as highlighted.
If it plays out – ill be an absolute bulltard! pic.twitter.com/EdSkdgyhwg
— TraderXO (@TraderX0X0) June 1, 2020
Bitcoin price has become overvalued
Transparency, decentralization, scarcity, and trust are important elements to the cryptocurrency’s design. Cause the asset has so many unique elements to consider, unusual valuation methods have been developed to gauge the fundamental health. These tools include valuation models based on the asset’s digital scarcity, hash rates, or cost of production.
Bitcoin overvalued for first time since September 2019 per Energy Value.
When EV bottoms and trends up, it is often a BIG up trend. Particularly after halving.
We are already getting signs of daily EV greater than price. If this continues, expect fast recovery. pic.twitter.com/lEU0n8knmM
— Charles Edwards (@caprioleio) June 1, 2020
One of the tools analyzes Bitcoin’s energy value has just indicated that Bitcoin’s price has become overvalued. While this may sound like an ominous prediction that a crash will bring valuations back to reality, in the past its caused the opposite reaction after an initial correction. However, this tool signaling that the asset is overpriced compared to Energy Value has in the past given Bitcoin the boost it needs to actually embark on a new uptrend.
In the time to come, everyone will wonder whether the Bitcoin price will grow. And there is one cryptocurrency analyst who is setting his target to $ 10,170. He noted that this level is important because a close above it will mark a higher level in the recent uptrend of BTC.
“BTC Monthly Close: Great month for Bitcoin, as it broke above previous resistance and while this would typically be bullish – this happened in Jan followed by a two-month downtrend. Want to see buyers continue to push above $10,173 on a weekly close for a higher-high on the trend.”
Join our Bitcoin Group for trading and update here.
- India Cryptocurrency Market Is Set To Gain Significant Market Share This Year
- Bitcoin Miners Reportedly Sold 11% More Coins Than They Generated Over The Same Period