It looks like the bitcoin price is at its highest point since early September, and the bearish markings left over by that month are finally starting to dissipate.
Bitcoin Has Beaten Its Present Resistance
The currency saw its price fall into the low $10,000 range roughly 45 days ago, but now things are beginning to pick up speed. Naturally, many analysts and industry experts are beginning to go back and forth regarding what could potentially be bringing life back to bitcoin. Joe DiPasquale – the CEO of Bit Bull Capital – commented in a recent interview:
So, what we are seeing here is that bitcoin first dropped following the BitMEX news and Trump’s COVID announcement but managed to hold the support at $10K. This, then coupled with the Square SQ -2.2 percent news, indicated that current valuations are attractive and helped push the price above $11K.
Guy Hirsch – the managing director of cryptocurrency exchange e-Toro – also offered his two cents, explaining:
Bitcoin has received a number of major boosts over the past week including Square’s announcement that it purchased $50 million worth of BTC to hold in its corporate treasury. Additionally, a resurgence of COVID in Europe and the US, plus uncertainty around US elections has led to a perfect storm of conditions for bitcoin to move upward, and so it did over the weekend. Another boost to bitcoin’s trajectory came from a competing coin, with Grayscale announcing that its Ethereum Trust is now an SEC reporting company. This move brings it in line with the Bitcoin Trust (GBTC) and offers yet another on-ramp into the crypto ecosystem. Given the relatively small size of the digital asset market (when compared against traditional assets), there tends to be a correlation between the top coins, with spillover effects often resulting in them moving together during huge price swings. These developments set up BTC for what could be a prolonged bull run that could see BTC surge past $12,000 and beyond.
Denis Vinokourov – head of research for Bequant in London – was also quick to discuss the Grayscale news in a recent interview, mentioning:
Bitcoin is also trading higher in sympathy with Ethereum, which is benefiting from the news related to Grayscale and its Ethereum Trust, as well as ongoing growth in the DeFi ecosystem as evidenced by the total value locked.
For the past week, bitcoin has been trading beyond the $11K mark, having reached this point on Friday, October 12. For the most part, the asset has managed to remain where it is, though small jumps and falls have occurred between $11,500 and $11,300, giving bitcoin a $200 window to shift positions.
Keeping Its Head Above Water
Kiana Danial – CEO of Invest Diva – states:
Bitcoin has confirmed a break above the daily Ichimoku cloud and the key resistance level of $11,200, and it has been on a six-day bullish streak.