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Digital Currency Revolution Series: Bitcoin Sets Strong Foundation For 2020 As Price Surpasses $10k And Heading For 5-Months Highs
As we had traced out some bullish indications in the past and foreseen upside trend direction, over the last weekend, the price of Bitcoin has moved in sync with our prediction, the upsurge through the psychologically significant $10,000 price level is now confirming the bullish sentiment in the crypto markets.
Bitcoin hits $10k or heading for 5-months highs?
The early Sunday, the bitcoin price (BTC) spiked past the $10,000 mark to reach a 2020-high of $10,189 per coin. The last time one bitcoin was worth $10,000 was almost five months ago.
It was explicitly traced our bullish indications during the formation of saucer pattern on daily plotting of BTCUSD and even before that recommendations of long build-ups have been given on December 2nd. Ever since then, it’s been 63% price jump so far and 42% in 2020. The pair rallied from $6430 (Dec. lows, that is when we recommended fresh long build-ups) to recent highs of $9,857 level. Such a resounding uptrend reinforces the positive sentiment observed in the crypto asset markets to begin the year convincingly.
Refer below weblink for further reading on that:
It has broken out the range resistance upon bullish engulfing patterns. Despite some minor hiccups signalled by hanging man & shooting star patterns, the minor uptrend seems to be quite healthy for now upon saucer formation (refer daily chart). Bulls are now shrugging-off these bearish patterns and taking-off well above 7, 21 & 100-DMAs with bullish crossovers.
Both the leading and lagging oscillators are in line with the uptrend, though momentum oscillators (RSI & stochastic curves) signal the mild overbought indications.
The $10,000 support line was not maintained. The price of bitcoin dropped overnight to start the week at around $9,800 before roaring back to $10,200 on Tuesday to confirm the strong bullish momentum.
Bitcoin price (BTCUSD at Coinbase exchange) has shown 3rd consecutive weeks’ bullish steaks from the lows $8,556.60 levels to the prevailing 10,500 levels and is now on the verge of hitting 5-months highs.
Thus, the projection for the upside risks in the underlying security price up to the retest of $13k mark remains intact and accordingly, long hedges were advocated using CME BTC Futures. It is unwise to count the chickens before they hatch, if we keep speculating on the next upside target. Instead, uphold long hedges for now.
Fundamentally, with the Bitcoin Halving less than 3-months away and mounting speculation the halving may be a major catalyst for further bullish momentum the crypto markets have roared into life in Q1.
Hence, upholding the above recommended positions is wise strategy by rolling over CME BTC Futures contracts of March deliveries on hedging grounds. Please be noted that on a fresh long build-up (rising price) coupled with the rising open interest and rising volumes is conducive factor from the contract holders’ perspectives.