Bitcoin Smashes $9,300 Following Threefold Volume Spike; Is $10,000 Next?
Bitcoin’s bull market showed little little signs of slowing on Sunday, as prices smashed through $9,300 for the first time since April 2018. A confluence of technical and fundamental factors were behind the rally, including a nearly threefold increase in trading volumes over the past week.
The bitcoin price not only crossed the psychological $9,000 resistance on Sunday, it went on to touch new 14-month highs. The largest cryptocurrency peaked at $9,391.85 on Bitstamp, having gained 6%.
At the time of writing, the BTC/USD exchange rate was valued at $9,260.50. The daily relative strength index (RSI) has turned extremely bullish with a reading of 68. Looking at the accumulation/distribution (A/D) line, we see that bitcoin is clearly in accumulation as volume flow continues to favor the bulls.
Bitcoin’s next major target is $9,600, a long-term price congestion resistance. On the opposite side of the ledger, immediate support is located in the $8,800-$8,900 region.
Read Hacked.com’s Week in Review: Bitcoin, Litecoin Take the Reigns Again as Crypto Bulls Eye New Highs.
All Roads Point to $10,000
Several factors, both obvious and not-so-obvious, are responsible for bitcoin’s latest price surge. The most obvious is the nearly threefold increase in bitcoin’s trading volume over the past week. According to the ‘real 10’ volume index from Bitwise, bitcoin’s 24-hour trade volumes have now surpassed $1.5 billion, up from roughly $600 million a week ago.
As Bitwise notes, “95% of the reported bitcoin volume is fake.”
Investors are also rallying on the news that Bakkt will begin testing its physically-settled bitcoin futures market on July 22. Unlike existing bitcoin futures contracts, Bakkt’s platform will offer physically settled units of the virtual currency upon expiry.
Facebook’s entry into the cryptocurrency market is also being met with optimism. In just two days, the social media network will debut the Libra project in a detailed whitepaper. Reports indicate that Facebook will begin testing its cryptocurrency in about a dozen countries later this year with a full launch planned for early 2020. Read more here.
As Forbes recently highlighted, one of the more not-so-obvious BTC buy triggers came from Litecoin (LTC), the fourth-largest cryptocurrency by market cap. The silver to bitcoin’s gold is up more than 300% year-to-date, including a 43% surge in the last month alone.
It’s not the first time that Litecoin has spurred bitcoin and the broader cryptocurrency market to bigger gains. Litecoin was first out of the gate in early February, helping to engineer the biggest market breakout since the dreaded ‘crypto winter’ began.
Litecoin’s price was trading just below $136 on Sunday, little changed over the 24 hour trading period.
Bitcoin’s bull market has more investors convinced that $10,000 is on the immediate horizon. Jeremy Allaire, the CEO of the Circle payment platform, recently predicted that Facebook’s crypto debut alone will send bitcoin beyond $10,000 this month.
Crypto market rallying (again) ahead of Libra launch, marking a massive inflection point in global adoption of cryptocurrency. BTC > $10k by June 21st, marking start of Crypto Summer.
— Jeremy Allaire (@jerallaire) June 15, 2019
Bitcoin’s share of the overall cryptocurrency market has increased over the past 24 hours but remains well below the highs from early May. The so-called bitcoin dominance rate is now 57.4%, according to CoinMarketCap.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Charts via TradingView.