Bitcoin’s $10,000 Breakout Backed by Investor Activity, Analyst Says On-Chain Trend ‘Mega Bullish’
- “So it begins,” as Bitcoin breaches $10k, now “let’s take the staircase up to $20k”
- As fear over coronavirus perpetuate, stock market dropped after hitting a new high this week while gold has slowed down
- Bitcoin price meanwhile expected to range till Q2 while the digital asset being digital gold and a store of value narratives gain momentum
For the first time, since October Bitcoin has surged back above $10,000. As we make it to five figures yet again, the community is elated of this important psychological level that the world's leading cryptocurrency broke last night surging about 40% so far this year.
Currently, we are trading at $10,130 and went as high as $10,178, a level that was last seen in late September.
“So it begins,” reacted popular analyst PlanB overreaching this level while BitMEX CEO Arthur Hayes is now counting down for a new all-time high.
“Nothing can stop me, I’m all the way up! Slow and steady wins the race. Let’s take the staircase up to bitcoin $20k,” said Hayes.
Bitcoin just hit $10,000.
I still think that Bitcoin will hit $100,000 by end of December 2021.
Fixed supply. Increasing demand. Time will tell. #Bitcoin
— Pomp 🌪 (@APompliano) February 9, 2020
Stock market and gold reacts on coronavirus
The move came amidst the stocks rising to all-time highs on Thursday on strong corporate earnings and solid economic data while concerns over the coronavirus perpetuate.
This led to stocks sliding on Friday but posting their biggest weekly gains in months. But things could go worse in the weeks ahead as shuttered stores and empty streets because of coronavirus takes a toll on global retailers.
“Markets should take a hit when economic data for February start coming out, as numbers undershoot revised consensus forecasts,” says economist and trader Alex Kruger.
Also, Federal Reserve Chairman Jerome Powell will testify before the congressional committees next week.
Gold slid down on positive jobs report reinforcing the optimism over the US economy but the traditional safe haven remains supported by coronavirus fears and a possible global growth slowdown.
“That should keep people using gold as a safe haven,” said Phil Flynn, a senior market analyst at Price Futures Group while Jim Wyckoff, senior technical analyst with Kitco says,
“The gold market has shown keen resilience recently in the face of a rallying competing asset class – equities.”
A close above 10.4k to seal bears fate
Bitcoin’s rally in part could also be because of the optimism on the limited impact of coronavirus creating appeal for risky assets, according to Ed Moya, a senior market analyst at Oanda.
The digital asset is currently looking ahead of a strong week as the digital asset approaches key areas, point of control of the previous range though June to Sept. 2019.
“Needs to break this area with conviction to keep this trend going strong,” said investor and trader Josh Rager. Meanwhile, trader Credible Crypto feels, “A weekly close above 10.4k will seal the bears fate.”
This $10k breakout on-chain analyst Willy Woo says is the real deal because it is backed by the increasing investor velocity, those who buy and hold Bitcoin. The current chart he said is “mega bullish.”
This breakout is the real deal. Fundamental investment activity is backing this $10k breakout. pic.twitter.com/IDWmhXX2Mj
— Willy Woo (@woonomic) February 9, 2020
Bitcoin peaked at $20,000 during the last bull run in 2017 only to lose 84% of its value. But in 2019, Bitcoin gained back about 88% of its value and is continuing its winning streak this year.
In the first and second quarter for this year, Rob Slymer of Fundstrat Global Advisors expects BTC to trade in a range of $10,000-$11,000.
Bitcoin’s performance this year also has experts seeing the narrative of bitcoin being digital gold and a store of value increases.
“Similar to gold, positive fundamentals should extend Bitcoin’s price appreciation,” wrote Mike McGlone, an analyst with Bloomberg Intelligence while Michael Sonnenshein, managing director at Grayscale Investments said,
“There’s certainly a narrative in the investment community that Bitcoin is solidifying its place as a store of value, a flight to safety, inflation hedge.”