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Bitcoin News
Bitcoin Posts High Time Frame Breakout as Analysts Eye $17,000+
Bitcoin has shown some immense signs of strength today as buyers aim for a ,000 break. If this level is shattered, the cryptocurrency could be poised to see some immense gains in the coming few days.
This level has catalyzed multiple strong rejections throughout the past few weeks, which indicates that bears may put up a battle if this level is visited in the near-term. Any strong rejection here could spark a sharp downturn.
The entire market seems to be fairly confident that Bitcoin will break above this level or remain stable in the near term.
Most altcoins are pushing higher today, with Ethereum’s ongoing upswing allowing DeFi tokens to see some of the largest gains of the day.
For altcoins, the best possible path forward is likely BTC seeing a prolonged bout of consolidation, which will force return-hungry traders to shift their attention towards altcoins.
One trader is now noting that a move towards ,000 could be imminent if bulls can post a high time frame close above ,000. He also notes that there are some important weekly levels at around ,200.
Crypto Market Rebounds from Recent Lows
At the time of writing, Bitcoin is trading up just under 4% at its current price of ,850. This marks a break above its previous range highs at ,800 set just a couple of days ago.
The break above these range highs signals that bulls are regaining control over the benchmark cryptocurrency and may indicate that further upside is imminent in the near-term.
If the cryptocurrency rejects at this level, it may enter into an even more prolonged period of sideways trading that allows altcoins to continue pushing higher.
Bitcoin Posts Major Breakout as Analysts Target Move to ,000+
While sharing his thoughts on where Bitcoin might trend in the near-term, one analyst explained that the cryptocurrency is poised to push past ,000 if it can close a daily candle above ,000 in the near-term.
“BTC: Big breakout for higher-highs on both low time frames and the daily chart. Bitcoin is getting close to some weekly levels near ,200 which could get rejected. Close above here on the daily and price likely heads to k+ with momentum.”
Image Courtesy of Josh Rager. Source: BTCUSD on TradingView.
How Bitcoin reacts to this level in the coming few days should provide insight into its mid-term trend and into that of the broader market.
Featured image from Unsplash. Charts from TradingView.
There’s a Perfect Storm Brewing For Bitcoin on a Weekly Time Frame
Bitcoin has been on a remarkable rally over the past few weeks. The asset has mounted past resistance level after resistance level, recently crossing ,000.
Market cynics have said that BTC’s recent inability to surmount the key ,500 resistance is indicative of a top. Though analysts are starting to agree that there’s a growing converge of positive signs for Bitcoin.
Related Reading: A Massive VC Just Raised 0M to Back Crypto: Here’s Why It’s Important
Bitcoin Flashes Flurry of Positive Signs on Weekly Chart
The strong recovery in the price of BTC since March’s ,700 lows has allowed it to print a number of bullish signs. One top trader identified some of these signs on a weekly time frame, and they are as follows:
The Moving Average Convergence Divergence (MACD) has seen a bullish cross. As reported by NewsBTC, in 2017 the indicator flipped green at ,000 to mark the start of a 1,000% rally to ,000. And at the start of 2019, Bitcoin rallied 300% when the indicator trended green in January.
The Parabolic Stop-And-Run indicator has printed a “buy.” As reported by NewsBTC, every time this signal was seen in the past five years, the cryptocurrency has seen “significant” upside, as put by Nunya Bizniz.
Bitcoin has recently crossed above three key averages: the 50-week, 100-week, and 200-week simple moving averages. The latter level is a crucial historical support, making the reclamation that much more bullish.
Chart from @CryptoHamsterIO (Twitter)
Also on a weekly time scale, Coindesk market analyst Zack Voell noted that Bitcoin on Sunday night closed its seventh consecutive week of gains, something not seen since April 2019, when the last bear market ended.
Chart from Zack Voell
This would suggest that should history repeat itself, the cryptocurrency is on the verge of yet another bull run. With Bitcoin being a market based on reflexivity (meaning momentum), this makes sense.
Add Bullish Fundamentals to the Mix
Alongside these positive technical trends are fundamental events that could catalyze Bitcoin growth.
The Federal Reserve just committed to even more money printing in the weeks ahead.
In a statement last Wednesday, Jerome Powell, Chairman of the Federal Reserve, warned that the U.S. economy is currently in its worst rut in history due to the outbreak of COVID-19:
“We are going to see economic data for the second quarter that is worse than any data we have seen for the economy. There are direct consequences of the disease and measures we are taking to protect ourselves from it.”
Powell said that to respond to this, the Federal Reserve will continue to commit to low interest rates, capital facilities for companies, and other liquidity injections.
Also, Bitcoin’s block reward halving is taking place in under seven days, which analysts say will cause the price of the cryptocurrency to rise should demand remain consistent or grow.
Photo by laurent DE BRITO on Unsplash
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