Bitcoin Crosses $10,000, What’s Next For The Market

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Bitcoin Price: Will BTC Cross $10,000 This Quarter?

Bitcoin has been trading sideways for quite some time now. We are now in the last quarter of the year with the end just around the corner. Does BTC look well-positioned to end the year on a ‘green’ note? Let’s see.

Is Bitcoin Price Ready to Hit the Five-Figure Mark, Again?

Popular crypto trader and analyst, Josh Rager pointed out his latest observation about the bitcoin market a few hours ago. He noted that BTC has been lying in the sidelines far too long. But the trend seems to be changing. Especially after a $100 move which has taken bitcoin price above the $9300 mark. According to him, it shows folks are badly waiting for this ‘compressed pattern to break out.

He feels that BTC needs to chart a higher high and ‘crack through high volume node (resistance) overhead’. Trading, in general, is 80% psychological, so the word goes. Market movements, especially in the nascent bitcoin and cryptocurrency space, is largely governed by the sentiment of the participants. As it was clearly visible in one of the polls on Josh’s Twitter page today.

A majority want BTC to break past the $9600 mark.

Does Bitcoin continue to move up or break down again out of this compression pattern (triangle)

Break bearish to $8ks and below
or
Bullish push up to 5 digits again

Well-known bitcoin commentator, Crypto Rand presented the case ‘bullish case for bitcoin’ for Q4-2020 a few days back. Applying the falling wedge pattern to bitcoin’s ongoing price action, he expects a ‘reversal pattern’ to play out. This would obviously be confirmed on the breakout of the upper trendline in the pattern. BTC prices could revisit the $14,000 highs attained earlier this year. The scenario is pretty much a possibility.

BTC Realized Market Cap Hits Another High

Realized market cap differs in its calculation from standard market cap. The time since each coin last moved is multiplied by the value of the transaction in which it moved. The result gives a value that some commentators say more fairly shows how dominant bitcoin, in fact, is within cryptocurrency.

Industry observer, Rhythm pointed out today that BTC’s realized market cap has clocked an all-time high of $102.9 billion. This also means that the total amount paid for bitcoin has never been higher than today. This pretty much paints a bullish picture for the market going into the year-end.

Network Fundamentals Are Stronger Than Ever

Frankly, it’s surprising to see bitcoin not getting dumped and holding strong in the $9000-$9500 range. We witnessed BTC’s rally on Halloween/Whitepaper Anniversary and are pretty much confirmed that strong hands (read big bad BTC bulls) don’t want prices to dip below the $9000.

But a point worth noting is the growing strength of bitcoin network fundamentals. Co-founder and partner at Morgan Creek Digital Anthony Pompliano expressed this trend best in one of his uber bullish BTC tweets yesterday.

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195 days until the next Bitcoin halving.

Less than 3 million Bitcoin left to mine.

Hash rate keeps hitting all-time highs.

We are watching the strongest computer network in the world continue to get stronger and stronger.

Do you think bitcoin price is on way to post massive gains in Q4 2020? Share your thoughts in the comments below.

If Bitcoin (BTC) Hits $10,000 Like Analysts Expect, What’s Next?

The Importance of Bitcoin At $10,000

Ever since Bitcoin (BTC) has entered the upper-$8,000s and low-$9,000s, analysts have been eyeing $10,000.

They see this level as a validation of Bitcoin’s validity as a viable asset. As Fundstrat Global Advisors’ Tom Lee put it best in a tweet, “[$10,000] will see FOMO from those who gloated about the 90% crash in BTC… and those who saw Bitcoin dead as forever.” Indeed, during 2020’s rally, all analysts and mainstream media alike eyed $10,000 as a level to keep an eye on. And once this price point was crossed, it was fireworks all around.

It isn’t just a strong physiological and sentimental level, but a important technical level too. During 2020’s downturn, $10,000 remained a key resistance and support.

What Happens When $10,000 is Breached

The importance of a five-figure Bitcoin has led many to claim that once BTC breaches $10,000, all hell may break lose. In a recent tweet, Tyler Winklevoss, the (purported) Facebook pioneer turned Gemini co-founder, claimed that once the cryptocurrency surmounts the aforementioned price point, “you can be it’s going to break $15,000.” What this Winklevoss twin seems to be referring to is the idea of market momentum. A move past $10,000 implies that bulls have control of the market, which should create further buying pressure.

$15,000 — over 50% higher than current levels — may just be the tip of the iceberg though. According to Lee, once Bitcoin reaches $10,000, “Level 10” FOMO will grace this market, which last occurred when BTC blipped above $4,500 in late-2020. If history is any guide, the cryptocurrency market will shoot even higher once $10,000 is breached.

In a recent podcast with Binance’s chief financial officer, Wei Zhou, Lee opined that there will be a “fast and furious” move to $20,000 following a break and close above $10,000. And from there, Bitcoin will double in the next five months, reaching $40,000 in a jaw-dropping move.

Barriers to Surmount

While everyone is keeping their eyes glued to $10,000, some believe that there will be some barriers before Bitcoin reaches that level. In fact, you’ve already seen these barriers come to fruition over the past couple of days, with cryptocurrencies consolidating and experiencing some short-term weakness. This, for the time being anyway, may continue.

Reported by Bloomberg on Wednesday, Bitcoin is facing down a “key technical obstacle” — this being the Relative Strength Index (RSI) reaching overbought levels. It is important to note that the last time RSI went overbought, nothing detrimental came to fruition immediately, meaning that calls for a strong retracement from here may just be an overreaction.

There are a few harrowing signs though. This chart from well-known analyst Filb Filb shows “lackluster volume” and a disappointing price structure. Filb adds that the long to short ratio on Bitfinex has begun to favor bears, implying a potential drop to lower levels soon.

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Bitcoin Crosses USD 10,000, More Gains Likely?

The market sentiment improved further and it seems like buyers are slowly taking charge. There was no negative news or development, which helped cryptocurrencies and lifted the prices of bitcoin, Ethereum, litecoin, ripple and bitcoin cash. Technically, the current bias is bullish and further gains seem likely.

Bitcoin Bitcoin succeeded in surpassing the USD 10,000 level. BTC/USD traded above the USD 10,300 and formed a high at USD 10,323. Later, a downside correction was initiated and the price moved back below USD 10,000.
However, the current price action is positive with more than 1% intraday gains. The current price is USD 9,910 and the price is preparing for the next move. It may perhaps move above the USD 10,000 resistance once again.
On the downside, supports are at USD 9,800, 9,600 and 9,500. To the topside, a break above USD 10,300 could push the price towards USD 10,500.

Ethereum
Ethereum is trading 1.2% lower today. However, the ETH/USD pair was able to hold the USD 900 support. At the moment, the pair is struggling to move above the USD 945 and 950 resistance levels.
The stated resistance levels are crucial hurdles, and a break above USD 950 is required for a test of the all-important USD 1,000 level. Support on the downside are at USD 900 and 880.

Bitcoin Cash and Ripple
Bitcoin cash was one the best performing coins today. It is currently trading 8.10% higher from the USD 1,301 low. It moved above the USD 1,500 level, formed a high at USD 1,546 and later started a downside correction. BCH/USD is currently trading at USD 1,475 and it looks set for another push above USD 1,500.
Ripple was down 2.6% to USD 1.080. XRP/USD is struggling to move above the USD 1.15 and 1.20 resistance levels. In the short term, there could be ranging moves between USD 1.00 and 1.20.

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