Bitcoin price is rising once again, trading around $ 11,845. At this point, Bitcoin is forced to hold above $ 11,500 to confirm further its upcoming uptick as $ 11,500 has been a technically significant level for Bitcoin for the past two and a half years.
Bitcoin price has been facing significant resistance for the past two and a half years
Bitcoin’s explosive move past $ 10,500 last week has undoubtedly satisfied many speculators. $ 10,500 has long been Bitcoin’s biggest enemy, having rejected Bitcoin’s three rebounds and forced it to fall in price. However, Bitcoin does have a new enemy – that level is the upper band of the Ichimoku Cloud on BTC’s weekly chart, currently trading at $ 11,500.
Big Chonis Trading trader shared the chart below, note how clearly price action has been rejected by that level recently. This level is seen as resistance during the rally in February and on many occasions in Bitcoin’s history. For Bitcoin to confirm the bull case, it will need to move above $ 11,500, then hold that level on Sunday night’s weekly close.
The Ichimoku Cloud is not the only reason Bitcoin must break through and hold above $ 11,500 shortly. Technically, $ 11,500 is the most important level for Bitcoin right now. A break above that level on a weekly scale will not leave much resistance to an all-time high of $ 20.00.
As can be seen, Bitcoin saw some key rejections at $ 11,500 on a weekly scale, like in June 2019 and just last week. The BTC manages to hold above this level, then, will mark the rejection of this discounted precedent.
Analysts say it is only a matter of time before Bitcoin surpasses $ 11,500, triggering the next phase of the ongoing bull run.
Vinny Lingham, the CEO of Civic, recently said that he thinks Bitcoin will consolidate around $ 12,000:
“It was a good call last time. This time likely that Bitcoin holds $ 12k and consolidates around that level while capital moves into Altcoins to test those waters. If $ 12k holds for 3 – 5 days, then we can expect the next phase to be a buildup for a much bigger run…”
There’s also Rob Sluymer, who told Bloomberg in an interview last week that a break of $ 10,500 paved the way for a transition to $ 14,000.
Bloomberg forecast: Bitcoin set for the bull run that will dust Nasdaq as Ethereum face an uphill battle
According to Bloomberg Intelligence senior commodity strategist Mike McGlone, Bitcoin adoption among mainstream investors is on the rise because a favorable macroeconomic climate will sustain a bull run in Bitcoin that will dust the Nasdaq.
He stated:
“Increasing adoption and vehicles for exposure, and custody, are accelerating Bitcoin into the mainstream of investments. In a world of zero and negative interest rates and diminishing equity-price returns due to quantitative easing, the quasi currency stores of value – gold and Bitcoin – are finding increasing investor interest… Bitcoin $ 10,000 Breach Set to Dust Nasdaq – Fundamentally bullish and breaking above key $ 10,000 resistance, Bitcoin has a solid foundation on the back of a steep correction and period of disdain, in our view.”
McGlone added that Bitcoin’s increasing fundamentals suggest that Bitcoin is strengthening its position as digital gold. Bitcoin is no longer a highly speculative asset and is not known as it used to be, with the momentum indicator Bollinger Bands showing an impending $ 13,000 boom.
In contrast, the Bloomberg Intelligence analyst said that Ethereum’s hot growth streak could be driven by pure speculation, not BTC’s fundamentally bullish growth.
He said:
“Ethereum has extended last year’s highs and leaped to one of the top-performing major crypto assets in 2020, but we view its rally as more speculative vs. the favorable demand vs. supply conditions supporting Bitcoin.”
Ethereum is facing stiff competition from protocols that provide the same use case, as a total of 6,000 crypto assets of all kinds flood the market. Bitcoin’s scarcity is a significant driver of its value, and when comparing two years of BTC’s performance against Ethereum, XRP and the altcoin market as a whole is a sign that BTC is the better thing in the long run term. Bitcoin is up 54% in the past two years, while Ethereum is down 4.5%, and XRP is down 30%.
He Tuyen:
“It’s the unlimited supply of the broad crypto market vs. the relative scarcity of Bitcoin that will maintain buoyancy in the benchmark asset, in our view. About 90% of the 21 million available Bitcoins have been produced, leaving demand and adoption as the primary price-outlook gauges. Our indicators point positive for Bitcoin, while the basic rules of supply and demand leave little hope of broad-market price advancement.”
In June, McGlone came up with the reason why BTC could return to an all-time high of $ 20,000 this year that is Bitcoin will follow a 3-year cyclical pattern.
He said:
“Bitcoin is mirroring the 2016 return to its previous peak. That was the last time supply was halved, and the third year after a significant peak. Our graphic depicts Bitcoin marking time for a third year following the parabolic 2017 rally. After 2014’s 60% decline, by the end of 2016, the crypto about matched the 2013 peak. Fast forward four years and the second year after the almost 75% decline in 2018, Bitcoin will approach the record high of about $20,000 this year, in our view, if it follows 2016’s trend.”
You can see the Bitcoin price here.
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