Only last week we announced that Bitcoin was smashing the $8,000 resistance level and here we are again. This time, only 7 days after, we’re announcing Bitcoin has broken the $9000 barrier a second time and it’s currently holding it very well. At the time of writing, it is swinging between $9,180 and $9,300.
The price is again defying all technical analysis and experts who were expecting a downtrend retracement of about 30% to see prices falling down to the $5800-6000 range straight after the $8K resistance level.
What’s happening and why Bitcoin keeps rising?
We mentioned in the 10th June article that the Facebook imminent coin issuance will be a big catalyst for the top cryptocurrency. Until the end of June when the event is expected to happen, we believe Bitcoin will keep rising. Many are already envisaging the major barrier break of $10K.
The momentum is surely favorable for another push to a higher high for this year. Let’s see why:
Just like in late November-mid December 2017, when BTC hit its all-time high of around $20K, the number of active addresses has also reached the one million figure.
This is the number of unique addresses with both the sending and receiving status, active in a 24-hour period. It’s important to remember that one address does not mean one unique user as single users can utilize multiple addresses in order to protect their privacy.
It’s surely an indication though that the usage of Bitcoin has increased rapidly over the past few weeks with 1 million actual unique transactions taking place in the network.
Another good indication is the network hash rate. It was announced yesterday that it just hit a new all-time high of 62 million TH/s, right when the price reached $9,000.
This should give peace of mind to investors who saw the hash rate worryingly falling by 45% in December last year. A higher hash rate is better when mining as it increases the opportunity of finding the next block and receiving the reward.
Also, there are more nodes (currently over 10,000) participating in the network making it more secure and less inclined to any hacking attack.
The fundamentals are there and with Bakkt confirming they will test Future Markets on 22nd July, nothing seems to stop Bitcoin from ascending.
To be noticed that there’s not much history resistance price after the $9K mark as in 2017 the move from that level was so quick that we do not hold much of data except for a little retracement at $11,177 down to $9,429 and then it was all the way up to $18K (source: Coinmarketcap.com).
And this happened within a week. Will history repeat itself?
Stay tuned, of course, we will update as soon as we see any interesting price action.