Bitcoin Finally Bursts Above $10,000 But Still Needs to Break this Key Level to End the Bear Case
To mark the end of the week, Bitcoin jumped 5.6% to climb to $10,250 on Bitstamp. The last time we were on this level was on June 1st.
However, unlike the last two times when BTC hit $10k, an increase in Bitcoin Coin Days Destroyed isn’t recorded this time. This metric gives weight to coins that haven’t been spent for a long time.
However, Coinbase went down as usual.
Interestingly, the Bitcoin mining hash rate also hit a new all-time high at 138.8 Th/s. Miners are certainly bullish as they use record hash power to mine bitcoin, competing for less BTC, 900 BTC per day than 1800 BTC per day before May 11 with more hashing power.
Bitcoin addresses in profit also just reached an ATH of 26,054,215, breaking the previous high set in Jan 2018.
However, unless Bitcoin breaks the key level $10,500, it will be “just another Lower High.”
I should clarify that $BTC made a higher high from the move down from $10,400 in June. A macro higher high still requires a break of the $10,500 area. That’s when the bear case dies. https://t.co/Pl051KoO45
— The Wolf Of All Streets (@scottmelker) July 26, 2020
Still, a downside move might not take us back to $6,000. Analyst PlanB notes that 200 WMA has passed $6k, and “Bitcoin never ever dipped below 200WMA.” Also, 200WMA never decreased and has been increasing by $200 every month.
For now, BTC has slid to around $9,950 with $2 billion worth of bitcoin exchanging hands in the past 24 hours.
Now, traders are waiting for BTC to close this week. Trader Josh Rager is looking for a weekly close above $9,760, “Ideally, a weekly close above $10,185 would give another high-high on the weekly trend.”
“Overall, IMO BTC looks good, though the price could retrace a few hundred more from here, not expecting more than that atm,” he said.
An upside in Bitcoin price saw ETH rising as well, but at a much higher rate. Up over 11.8%, Ether is trading at $324, a level saw a year back in July 2019.
These greens in both the top digital assets were recorded throughout this week, which also saw the trading volume and open interest on futures of both Bitcoin and Ethereum skyrocketing the last couple of days.
Now that the market has come alive, “If we're entering a bull market, it'd be silly to bet against the house of speculation,” says trader CL.
— Panama ₿rypto (@Panama_TJ) July 25, 2020
“Bullishness returning,” is what on-chain analyst Willy Woo’s latest model says, that he is working on which “picks the start of exponential bull runs.”
“Alts frothy, ETH getting a DeFi tailwind, volatility returning, BTC mempool peaking, BTC txs clogging, this is all great signs for the months ahead,” he added.
Bitcoin (BTC) Live Price
1 BTC/USD =$50,532.9880 change ~ 4.64%