Following yesterday’s impressive 2 hour Bitcoin surge, markets have held these levels today as updated support and resistance zones are forged. A lot of crypto analysts and industry observers insist that BTC will not quit there and has surprisingly little resistance all the way up to $6,000.
Bitcoin Higher on Record Volumes
Reports of a lone buyer generating the digital tsunami on crypto markets are spreading today. Reuters reported that the Bitcoin pump was quite possibly triggered by an order worth approximately $100 million. According to Oliver von Landsberg-Sadie, CEO of crypto firm BCB Group this was dispersed across US based exchanges Coinbase and Kraken and Luxembourg’s Bitstamp. He added;
“There has been a single order that has been algorithmically-managed across these three venues, of around 20,000 BTC. If you look at the volumes on each of those three exchanges – there were in-concert, synchronized, units of volume of around 7,000 BTC in an hour.”
This solo event caused a cascade effect triggering automated buy orders across Asia which sent Bitcoin powering towards $5,000 in a push which added nearly 20% to BTC in a day. It has been Bitcoin’s finest single day gain for very nearly a year.
Founder and CEO of crypto investment firm BKCM and self-proclaimed Bitcoin bull, Brian Kelly, told CNBC;
“Sentiment has shifted here. All indications that we have — whether it be fundamentals, technicals, the quantitative analysis we do — all suggest that we probably have at least started to put in the bottoming process.”
He figured in that developed fundamentals and higher institutional interest alongside new solutions like crypto custody from significant brokerage firms has added to sentiment.
Kelly pointed out that the huge levels of volume, which presently equal record levels of $23 billion, might send Bitcoin back to price levels not seen for 5 months. $6,000 is a justifiable move for this rally said, adding that he probably would not call BTC overvalued until it made it to the $6,500 to $6,800 range.
Others observers including RT’s Max Keiser echoed the sentiment posting this meme on twitter;
$6,000 is calling. Will you answer? #Bitcoin pic.twitter.com/WR3izUQF2i
— Max Keiser, tweet poet. (@maxkeiser) April 3, 2019
Resistance is Futile
Looking back at the chart for the past six months or so there are no major resistance points between current prices and the level it capitulated from in November. From a tech standpoint the Relative Strength Index (RSI) on the BTC weekly chart is fascinating as it is venturing to shift above a critical point at 53.85 for the very first time since February 2018.
The 50 period EMA is also entering into play on the exact same chart and a break through this could easily send Bitcoin to $6,000.
Analyst Alex Krüger has waded in response to price queries from followers with his predictions that also spell further upsides for Bitcoin;
Base case scenario:
– Up. FOMO. 5500 (5000 too close).
– Then down. 4000 feasible, see latecomers fold.
– Then chop in the gap, form a new range
– Sustained bull resumption afterwards
Analysts still waiting for 1500 or 1800 likely won’t be selling many books.
— Alex Krüger (@krugermacro) April 2, 2019
Currently energy is all bullish and the crypto community is certainly celebrating after many months of doom and gloom.
If this truly is the finish of crypto winter, then the only direction is up for Bitcoin and its brethren for the near future.
Image from Shutterstock
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