Bitcoin Price Jumps Above $9,000 with Blockchain Data Showing Minor Resistance to $9,260
- The Dow Jones, Nasdaq and S&P 500 futures plunged while bitcoin and gold rose Thursday
- Bitcoin has the strongest support level in the $8500 and $8700 range where over 1 million addresses previously bought more than 720k BTC
Today, Bitcoin's price has yet again jumped above $9,000, going to $9,150. The world's leading cryptocurrency is up by 3.89% in the past 24 hours while managing the daily trading volume of $895 million.
The majority of the crypto market has turned green with Tezos (XTZ) leading the gains with over 12.61%.
“One Line To Rule Them All,” according to trader Scott Melker is $9,090.
Meanwhile, trader Crypto Michael says,
That's a slight breakout here. Flipping the $8,950-9,000 area as support and we can see $9,150 / $9,250 as next levels.
Showing strength and even $9,400 is on the tables.
— Crypto Michaël (@CryptoMichNL) March 5, 2020
Today bitcoin is making some moves, unlike the Dow Jones futures that plunged Thursday morning along with Nasdaq and S&P 500 futures after picking up steam on Wednesday.
However, just like bitcoin, gold prices rose as coronavirus cases continue to spread around the globe. The exacerbating concerns about the global impact of this epidemic prompted investors to seek safe-haven metal.
Spot gold was up 0.7% at $1,646.73 per ounce and US gold futures rose 0.2%. Afshin Nabavi, senior vice president at precious metals trader MKS SA said,
“The virus is really taking over… I think the markets are a bit nervous, (gold is) more prone to higher prices and is well supported on the downside.”
Meanwhile, the European Central Bank is expected to cut rates by 10 basis points next week and join its peers in the US, Australia, and Canada.
Bitcoin’s Loss is Tether’s Gain
Bitcoin has started moving but a “strong level of resistance” is present between $8,700 and $9,000, as it is a point where about 800 thousand addresses are holding 5500k of BTC. Crypto data provider IntoTheBlock reported,
“If Bitcoin breaks through that level, then it might experience a minor resistance between $9,000 and $9,260, where 590k addresses previously bought around 400k BTC.”
Based on IOMAP (In-Out Money Around the Current Price) analysis, Bitcoin has the strongest support level at the range between $8500 and $8700, where more than 1 million addresses previously bought more than 720k Bitcoin.
Today’s gains came after dull activity this week and losing 16% of its value last week. The drop in bitcoin price these past few days also resulted in a drop in large transactions of bitcoin, but lead to a “dramatic” increase in the number of transactions in Tether (USDT).
During the last 30 days, #Tether saw an increase in the network activity
– There were 54.07k active addresses. This is 87% more than the 28.8k addresses that were active on Feb. 2
– There were 109.15k on-chain transactions, 120% more than the 54.22k txs on Feb. 2 pic.twitter.com/7aMnZGDEwM
— intotheblock (@intotheblock) March 3, 2020
The downward pressure on price was also seen in open interest on bitcoin perpetual swaps that saw an 18% decrease and an 11% reduction in the percentage of addresses with a balance.
Additionally, the Historical In/Out of the Money indicator that tells us the number of investors that would have made a profit if they had sold their position at the price at that current date dropped 10% to year-to-date low.