Bitcoin at $10,000 or will Bitcoin Cash Steal it’s Thunder?Bitcoin finds its wings as the market shifts a gear in the early morning, Bitcoin Cash inspiring investors to move back in. How far Bitcoin can go remains to be seen, as Bitcoin Cash looks to get the upgrades to knock Bitcoin off its perch.
Bitcoin rose by just 1.7% on Monday, following Sunday’s 0.89% fall, to end the day at $8,940.9.
While recent moves have been relatively minor, particularly when compared with Bitcoin Cash, the good news has been the upward momentum, with Monday’s intraday low $8,769 holding well above the day’s first major support level of $8.674.47 and 23.6% FIB Retracement Level of $8,463.
For the Bitcoin bulls, holding above key support levels is key in the current environment, with investors’ attention being drawn to transaction times and fees ahead of the Bitcoin Cash hard fork.
Bitcoin managed to break through the day’s first major resistance level of $8,971.57, with an intraday high $9,011, but failed to hold on to $9,000 by the day’s end and eased back to a relatively range bound afternoon.
In spite of the failure to hold on to $9,000 levels by the close, the slow and steady gains continue to support the bullish trend formed back at 6th April’s swing lo $6,500.2, with Bitcoin having now made gains on out of the last 6 sessions.
The jury is out on Bitcoin’s future, but while the Bitcoin whales continue to provide support, the in excess of $150bn market cap is unlikely to evaporate overnight, in spite of Bitcoin’s shortcomings as a viable alternative to fiat money. Whether the whales will be as supportive in the months ahead remains to be seen.
At the time of writing, Bitcoin was up 3% to $9,208.3 to hit the highest since 15th March, in what’s been a broad market rally at the start of the day.
An intraday high $9,250 saw Bitcoin break through the day’s first major resistance level of $9,044.93 and 2nd resistance level of $9,149 before facing selling pressure ahead of the 3rd resistance level of $9,391.
With the day’s first major support level sitting at $8,802.93, the morning’s move through the $9,200 should leave support levels untested through the day, breaking back to $9,000 levels and holding a key move for Bitcoin’s bull trend formed back at 6th April’s $6,500.2
For the day ahead, a move through to $9,300 levels brings forward the prospects of Bitcoin moving back through to $10,000 levels, though whether Bitcoin can reach the dizzying heights of December remains to be seen, the smart money likely to go for the cryptocurrencies than can deliver in the real world.
Looking across at the Cboe Bitcoin Futures, the May contract was up $360 to $9,240 supporting Bitcoin’s current level, with Bitcoin’s direction the driver behind the futures market at present, supported by the improved sentiment across the cryptomarket.
With the markets in full swing this morning, elsewhere, Bitcoin Cash was up 6.65%, with Dash and Ripple’s XRP hot on its heels with gains of $6.53% and 6.07% respectively, investors seemingly at ease over the prospects of greater cryptomarket oversight in the summer.