fxs_header_sponsor_anchor

Bitcoin Market Update: BTC/USD breaks free from a triangle pattern

  • BTC/USD is consolidating gains above $10,000.
  • If the bullish breakthrough is sustained, BTC may start skyrocketing.

Bitcoin (BTC) settled at $10,125 after a head-spinning rally to $10,412 during late hours on Monday. The first digital asset has gained over 5% on a day-to-day basis, though it is mostly unchanged since the beginning of Tuesday. Bitcoin’s market capitalization surpassed $186 billion, while its market share decreased to 65.3% as some altcoins, like NEO and Stellar registered double-digit growth.

If the history of any guide, BTC/USD may be on the verge on a strong rally towards new annual high, provided that a move above $10,000 is sustained within the recent days. The Bloomberg Galaxy Crypto Index, which is based on the largest digital tokens, broke above a critical juncture at the 400 that served both as a resistance and the support since March.  A break above this level could create a pre-condition for a new bullish trend.

Cryptocurrencies have weathered the panic-selling storm that took place in March and seem poised to benefit from a wide-range of growing institutional interest. It is not just Bitcoin that is attracting interest -- alternative coins such as Ether and Bitcoin Cash seem to have bigger upside potential, Edward Moya, senior market analyst at Oanda, commented as cited by Bloomberg.

BTC/USD: Technical picture

BTC/USD broke the upper line of the recent triangle pattern, which is typically a bullish signal. The next important resistance comes at Monday’s high at $10,412. Once it is out of the way, the upside is likely to gain traction with the next focus on the annual high at $10,511.

On the downside, the support is created by $10,000. Now that this pivotal point flipped from the resistance into the support, the sellers may have a hard time pushing the price lower. If it is broken, the next barrier of $9,600 will come into view. Most likely, this area will attract new buyers and stop the sell-off.

BTC/USD daily chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.