In the last few hours Bitcoin has broken the resistance level of $10,600 and is currently trading slightly below $10,700.
The whole cryptocurrency market is now worth nearly $280B and Bitcoin dominance is once again very close to the 69% range.
We are also experiencing a green day for most cryptocurrencies, with the biggest gains by ETH that touched the $200 range again, BNB, Monero and Chainlink, all up around 5-8%.
This is quite a different situation from last week when BTC hit the bottom at $9,675, the lowest value registered since 31st July.
In only a matter of 4 days, the top cryptocurrency gained over $1000, confirming itself as a very volatile asset at the moment but also gaining back its first place as the best 2019 return on investment halving among all assets. Not just cryptocurrencies but also gold, stocks, bonds, etc.
What caused the recent spike?
The news on Bakkt launching on 23rd September is surely behind this new rally.
Many have not yet realized how huge the news is. The long-awaited daily and monthly Bitcoin Futures will be physically settled in Bitcoin, meaning that the volume of the cryptocurrency is expected to rise considerably with an obvious impact on price. Bakkt futures will allow institutional money entering the Bitcoin and cryptocurrency market along with investments from retailers.
The consequent effect on Bitcoin price is expected to be even bigger than the 2020 halving, although both bull and bear experts agree that the two events combined will produce a very bullish long term momentum for the market.
Back to our days, what needs to happen now for the cryptocurrency to gain further strength?
While some analysts are still predicting a drop in the range of $7,000 and even further down to the $6,000 range, it looks like we really are at a turning point from here.
$11,200 is the next stop after which $12,000 should be an easy target. We will see how the week develops as in order to be entirely bullish the price needs to close at or above $12,000 and certainly not under $10,600.
The Bitcoinist, on the other hand, is giving a different view on the price action as “Many bearish indicators point towards a break-down and lower low in the coming days”. In particular, on the 4-hour chart, the descending volume within the most recent ascending wedge appears as a bearish sign because a drop in volume means the rising price action is unsustainable.
Although altcoins are gaining momentum today, there are no specific forces that can confirm the bullish status. The losses against Bitcoin this year have been considerably high and will take time to recover, especially in view of the fact that the major currency seems unstoppable and more robust in terms of fundamentals.