The price of Bitcoin (BTC) topped $ 11,600 for the first time in 12 months, supported by rising market sentiment. While BTC / USD is showing strong momentum, investors believe there is little resistance before $ 15,000.
Daily snapshot of the cryptocurrency market. Source: Coin360
Bitcoin hit $ 11,763 on BitMEX in a sudden price move over the weekend. It also “closed” the gap in CME futures to around $ 11,630, which usually doesn’t happen over the weekend.
Little resistance between $ 12,000 and $ 15,000
Meanwhile, Kyle Davis, the co-founder of Three Arrows Capital, suggests the weekend’s price action hasn’t even started. He notes that there is less resistance between $ 12,000 and $ 15,000. Davis said:
“What’s crazy is that the weekend move hasn’t even started yet. What is the resistance between $ 12 and $ 15,000? “
Bitcoin’s weekly chart shows that historically there is a lack of price action between $ 12,000 and $ 15,000. The last time BTC broke above $ 11,600 was in mid-2019, when it hit a multi-year high of $ 14,000 before rejecting.
Bitcoin’s daily chart with a major resistance level. Source: TradingView.com
It should also be noted that the price of Bitcoin hit a record high in 2017 within two weeks of hitting $ 11,600.
According to Michael van de Poppe, Bitcoin’s market structure would remain convincing if it held $ 11,400. Stability above the $ 11,400 level would show that it has turned to a support level. Van de Poppe said:
“Yes, $ 11,200 broke and reversed support -> $ 11,500 11,700 tests and the CME gap closed. A sidenote; EUR / USD corrects. I think gold, silver, and $ BTC will do the same. Crucial threshold? Holding $ 11,400. “
What is behind the Bitcoin rally?
At the same time, data from Skew shows that less than $ 20 million in futures contracts were liquidated during this Bitcoin surge. When BTC price movement is driven by the futures market, it often leads to increased levels of sell-offs.
The mediocre amount of closeouts in the futures market suggests that it is likely the spot market and options that are catalyzing the rally. If the Bitcoin futures market is less heated, it leads to a more stable and fundamentally strong bull cycle, which some leading analysts claim is starting now.
At a longer time frame, a pseudonymous trader known as “Rookie” said the monthly Bitcoin and Ethereum candles were trending upwards. The confluence of a favorable macroeconomic market structure and a neutral futures market could keep BTC’s momentum going. The trader said:
“Monthly BTC and ETH candles essentially closed at their highest points of the month. NO top wick. It’s optimistic. “
In the short term, Bitcoin’s biggest hurdle is whether it can defend the major $ 11,400 level as a support area. Traders generally remain positive as BTC begins to erupt and outperform alternative cryptocurrencies.
Follow the main crypto markets in real time here