A prominent Wall Street analyst arguing the $10,500 resistance will soon be toppled by Bitcoin price
After sideways trading between $ 9,600 – $ 9,700 for several days, Bitcoin price saw an explosive price yesterday morning. After a failed attempt to break $ 9,800, BTC exploded into $ 9,150 on spot exchanges and $ 9,300 on margin exchanges, liquidating tens of millions. At press time, Bitcoin is trading around $ 10,206, up more than 5% in the past 24 hours.
Bitcoin faced a reversal when the bulls could not sustain the pressure of this hike, seemingly catalyzed by the futures market. A prominent Wall Street analyst is still optimistic about the cryptocurrency market, arguing that the $ 10,500 resistance will soon be overturned.
Bitcoin price will soon break $ 10,500: Wall Street analyst
Rob Sluymer, a technical strategist at Fundstrat Global Advisors, still hopes that Bitcoin will continue higher after the initial breakout:
“We remain positive on the overall precise structure for Bitcoin and do expect it push through $ 10,000- $ 10,500 as part of its longer-term bullish technical profile.”
In a research note shared with Bloomberg, Sluymer added that BTC breaking $ 10,500 could result in a rally of about 31% to $ 13,800. That region remains a resistance band that Bitcoin will need to break above to signal its next move to resistance at $ 13,800.
This came after Sluymer wrote in a March note that BTC’s medium-term outlook was compromised after the collapse of investment capital of up to $ 3,700:
“For now, technically, we will again give Bitcoin the benefit of the doubt that it is attempting to bottom but recognize Bitcoin will likely need months of consolidation to repair the technical damage now in place.”
This comment has been proved right because BTC has been caught in a consolidation model for nearly three months now.
Sluymer’s colleague, co-founder Tom Lee, predicts there will be another rally in the stock market. Considering the correlation that has formed between the S&P 500 and Bitcoin, such a rally could lead to a higher cryptocurrency market.
— CNBC’s Fast Money (@CNBCFastMoney) July 23, 2020
Other market commentators, citing chain techniques and metrics, agree with Sluymer’s market sentiment that BTC buyers are in control.
Also, Blockfyre’s head of technical analysis commented that Bitcoin has just closed on a three-year downtrend. The downtrend is formed at the all-time high price of BTC of $ 20,000 by 2020.
“#Bitcoin just had uploaded first daily close ever ABOVE the three-year downtrend line from ATH’s when CME Futures launched. This is potentially an invalidation with a HH of any bearish case and the official start of a new macro bull trend.”
Others added that with weekly candles and next monthly candles, BTC managed to move above the $ 9,800 level is key to the upside.
Spot gold was up to $1,916.91 per ounce, was just $3.39 shy of record high hit in September 2011 at $1,920.30
Elsewhere, the price of gold extended its gains, to just $ 3 from an all-time high. According to analysts, the gold price has been increasing recently mainly due to the escalation of relations between the US and China, plus the US dollar to the bottom level in more than 20 months. In addition, it is impossible not to mention that the uncontrolled Covid-19 epidemic in many countries also increased the gold’s shelter. Spot gold was up 0.8% at $1,916.91 per ounce by 00:30 GMT, was just $3.39 shy of record high hit in September 2011 at $1,920.30. U.S. gold futures rose 0.8% to $1,913.50.
US Secretary of State Mike Pompeo recently targeted China in last week:
“Washington and its allies must use more creative and assertive ways to press the Chinese Communist Party to change its ways.”
Gold tends to benefit from broad stimulus from central banks as it is widely viewed as a hedge against inflation and monetary disputes. The dollar index fell 0.1% to a nearly two-year low with its rivals, making gold less expensive for holders of other currencies.
US stock futures slumped and Asian stocks fell on the defensive in early trading on Monday as consular agencies retaliated worried about further tensions between the two economies largest.
StoneX analyst Rhona O’Connell said that the only factor that could weaken the rise in gold prices was the rapid development of the COVID-19 vaccine. Gold prices have risen more than 25% since the beginning of the year, benefiting from low-interest rates and stimulus measures from central banks.
Afshin Nabavi, head of trading at MKS (Switzerland), also said that gold can find new peaks after breaking the threshold of $ 1,900 an ounce, the problem is only time. DailyFx currency strategist Ilya Spivak said that, based on the basic logic, gold prices will benefit when countries simultaneously launch economic stimulus packages. While interest rates are also forecast not to rise higher and the consequences of this may be inflation.
You can also check Bitcoin Price here.
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