Bitcoin’s [BTC] touted imminent bull run is on the horizon, given the surge in the top cryptocurrency’s price over the past few weeks. However, before the bulls take over, a major obstacle must be surpassed.
Given the remarkable run Bitcoin is on, bullish sentiments are overflowing. However, some suggest that the first barrier will only present itself when the price inches closer to the $5,800 – $6,000 range. Based on the support presented in 2018, the market is yet to test the first inkling of resistance for the next bull run.
360Trader, a popular cryptocurrency analyst, reiterated the same on Twitter, referring to the $5,800-$6,000 as a “beast of a support.” He added that unlike previous resistance levels, this one would not be “conquered quickly,”
“The real $BTC battle should be the $5800-$6000 marker
Back in the day it was a beast of a support … let’s see if it’s a beast of resistance.
I’m gonna laugh my butt off if it’s conquered quickly tho. After all, this is #crypto yo.”
Bitcoin’s momentum slowed after it descended below $5,600 on April 23. Further, the coin was close to breaking the $100 billion market cap, but soon fell below as correction bears attacked.
Since the beginning of April, several key levels were broken, mirroring the market conditions prior to historical bull runs. The first was the coin shooting above the $4,200 resistance level on April 2, following by a quick rise over what many hold as the margin between the bull and the bear market, the 200-day moving average, which was placed at $4,623.
After the coin crossed the $5,200 mark, the price held firm and showed positive signs of sustenance, but saw collective market momentum seeping away. This resulted in the market trading sideways by the close of the second week of April, with pessimistic expectations of a decline surfacing.
On April 23, the bearish worries were wiped clean when Bitcoin saw a 5 percent price pump, pushing it over important levels once again. The first was $5,350, which posed as a key test level throughout 2018 and which, if broken, would consolidate “buying pressure,” according to prominent analysts. The next was the psychological level of $5,500, broken within hours of the $5,350 breach.
Another major milestone for the market was the Golden Cross realization, when the 200-day moving average was surpassed by the 50-day MA, an indication of the bull run commencing, according to many.
Further evidence of the Bitcoin bull run was given by Mr. Anderson, based on the correlation of BTC’s price and its Relative Strength Index. Based on Anderson’s analysis, the daily scale RSI of the king coin never touched 85 in a bear market. Given the current investor interest, this could be a sign of “healthy retracement & the next bull run.”
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Top Losers: XRP, Bitcoin Cash [BCH], Litecoin [LTC] & EOS bleed as Bitcoin [BTC] falls below $5,600
Graduate of Finance and Economics, interested in the intersection of the world of decentralized currency and global governance.