Bitcoin keeps proving to still be in a very volatile phase that started with the bull rally back in April.
Now that it’s becoming globally recognized as the best asset to resort to in times of crisis, along with gold, we can only predict a rosy future for the top cryptocurrency all the way to the next halving.
Yet, what appears to be a gradual but consistent growth on the long term it’s actually a path that is scattered with slips, falls, breakouts and rallies that overall make the market particularly exciting but also unpredictable from many perspectives.
Only last week we were discussing if Bitcoin will manage to break the $10,000 level and we now find ourselves observing the trend climbing up to the $12,000 resistance.
That’s Bitcoin volatility at its best.
In traditional markets, technical analysis can help understand the next moves so we will use TA in crypto as well to spot the lows and highs, the support and resistances always taking for granted that they are only indications. Then the markets behave as they wish (or as major forces wish!).
Anything can happen now but let’s try to design a possible path.
While volume remains still relatively insignificant to sustain a bull momentum, recent moves point out to a likely revisit of the $13,000 level soon.
We left behind the first support area of $11,200, tested the $11,500 and are now consolidating in the $11,800 range.
Yesterday and last night in European time zones, Bitcoin touched briefly the $12,000 for the umpteenth time. Therefore, this has now become our observation area as Bitcoin needs to break it and stay in the zone for a while before we can be bullish and hope for $13K again and more highs.
On the downside, if we go back and retest the $11,200 level we might see further drops and a retest of $9,000 is possible.
On a macro perspective, the upcoming Fidelity, Bakkt and other ETFs will surely mean an ignition of big money into the crypto space. More liquidity will help move the price considerably, therefore, experts and analysts are longing for them to jump into markets so as to start a new chapter in the life of the cryptocurrency space.
The market cap of Bitcoin is just above $209B, the overall market cap is $304B with the top crypto getting closer to the 70% market dominance.
All other currencies are still experiencing major losses, with Litecoin losing 12% against the dollar since the halving day. Ethereum losing over 200% against Bitcoin in the last two months alone. The pair exchange had not been so favorable to Bitcoin in years now. Also, XRP and BCash are down against Bitcoin since June while showing losses of about 2% today against the dollar.