Bitcoin Continues Upward Grind
Since our last market update, Bitcoin (BTC) has continued to foray higher, managing to maintain bullish momentum for an extended period of time. As of the time of writing this, the cryptocurrency has gained 10% in the past 24 hours, finding itself changing hands for $12,600 apiece. Tuesday’s high so far is just around $12,700.
According to a number of analysts, this move puts BTC in a good spot to retest all-time highs in the coming days, barring that momentum fails and buyers do not continue to step into this market.
A brief aside, this consistent momentum has continued to force altcoins to fall against the market leader. In fact, since Ethereum World News’ previous report on the matter of altcoins, the Bitcoin dominance figure has grown by another 0.5%, which is rather notable in a market valued at $300 billion.
Crypto Hornhairs, a popular analyst, notes that a strong break above $12,500, which BTC just did recently, sets the stage for new year-to-date highs. There are fears of the $13,000 acting as a level of resistance, but $12,500 is much more important from a technical standpoint.
But, some are wary that Bitcoin will encounter a bit of resistance and trouble at $13,800 though, citing the fact that this level remains important due to the Fibonacci Retracement indicator. Also, BTC often “double topped” in 2018, then experienced a bearish reversal.
But, as Level’s Josh Rager points out, Bitcoin is now in a bull market, giving it a good, if not high likelihood of breaking past the year-to-date high.
One More Line to Breach
While analysts are saying that Bitcoin is near poised to surge another 8% to put in new highs for 2019, there may be one trend line that stands in the asset’s way.
As Twitter user “CryptoHamster” points out, BTC’s attempts to break past $12,700 put it right at the top of a “global trend line”. This line has acted as both support and resistance for BTC over the course of its lifespan as a tradable asset. Or in other words, it’s arguably the most important trend line in the asset’s history.
A decisive move about this trend line, which is currently sitting in the mid-$12,700s, could give BTC the chance to surge to fresh all-time highs.
While there is presumably a high likelihood of rejection, BTC has seen a number of positive fundamental developments that may ensure buy-side momentum persists. These include but aren’t limited to, the impending launch of Bitcoin futures by Bakkt, ErisX, and LedgerX; institutions continuing to siphon money into the space, as made apparent by futures and other vehicles; dovish monetary policy by the world’s central banks; and growing mainstream coverage, which inevitably leads to investment interest.