Bitcoin Soars 5% to New 2019 High But Faces Epic Resistance: Can it Push Through?
One thing that we can take from yesterday’s events is that in this market cycle Bitcoin appears to be oblivious of bad news. The bulls battled on regardless and BTC surged past the psychological $6,000 barrier a few hours ago.
Bitcoin Shrugs Off The News
When the news broke that Binance had been hacked to the tune of around $40 million crypto markets and Bitcoin barely blipped. Ok, so it tanked about 3 percent or so back to below $5,800, but immediately started to recover and surge upwards of $6,000 over the next few hours.
The bulls ignored the news and took BTC to a new 2019 and almost six month high of $6,075. The move saw BTC add 3.5 percent on a day where the world’s largest crypto exchange got hacked. As economist and crypto trader Alex Krüger pointed out Bitcoin has stopped caring about bad news.
Yes BTC did dump after the Tether imbroglio but soon recovered and was back to new highs for the year within a few days.
— Alex Krüger (@krugermacro) May 8, 2019
Fundstrat’s Tom Lee also noticed the muted market response and gave kudos to Binance for the way it handled the incursion;
“In a world of decentralization, the crypto community is placing a premium on entities that have earned “trust” (centers?). It is pretty clear @cz_binance and @Binance has earned that confidence, looking at the reaction of the community and the muted price reaction by #bitcoin”
In a world of decentralization, the crypto community is placing a premium on entities that have earned “trust” (centers?)
— Thomas Lee (@fundstrat) May 8, 2019
Epic Resistance at $6,000
Now that it is over $6,000, analysts are looking to where Bitcoin may go next. Forbes ran a piece proclaiming that the move could lead to a sharp upside for Bitcoin and there was no FUD in sight.
Director of digital currency research for TradeBlock, John Todaro, commented that “$6k has been a key price level for bitcoin,” while Jeff Dorman, CIO of asset manager Arca, added “there could be little standing in the way of rapid and significant gains,” once BTC surpasses this level.
Bitcoin is currently at a huge resistance zone. It traded around $6,000 for over three months in 2018 so could well consolidate here until around August if the pattern is repeated. Technical Analyst Josh Rager has predicted a pullback and pointed out;
“The most epic $BTC resistance awaits. Don’t think BTC blasts through this area easily, this resistance is bearishly strong. A flip to support above $6450 would be insanely bullish, IMO if $BTC closes above, it won’t be closing back under. For now, it is a primetime pullback zone.”
The most epic $BTC resistance awaits
Don’t think BTC blasts through this area easily, this resistance is bearishly strong
A flip to support above $6450 would be insanely bullish, IMO if $BTC closes above, it won’t be closing back under
For now, it is a primetime pullback zone pic.twitter.com/mL9P2697RE
— Josh Rager 📈 (@Josh_Rager) May 9, 2019
The altcoins are not having such a good time as Bitcoin continues to eat away at them increasing its own market share to an eight month high of just below 57 percent. The second and third largest crypto assets, Ethereum and XRP, have barely moved as BTC marches ever higher.