HANGZHOU, CHINA - JULY 24: A mobile phone screen showing the Shanghai Composite Index is pictured on ... [+] July 24, 2020 in Hangzhou, Zhejiang Province of China. (Photo by Long Wei\/VCG via Getty Images)<\/p>\n
The price of Bitcoin (BTC) reached $10,956 on BitMEX, officially surpassing $10,900 for the first time since 2019. It has broken out of a multi-year trendline, dating back to 2017.<\/p>\n
Traders and technical analysts are generally optimistic toward the breakout of Bitcoin. The rapid upsurge from $9,933 to $10,956 on a single day officially eliminated the chance of a triple top forming.<\/p>\n
The price of Bitcoin surges past $10,900 on BitMEX.<\/p>\n
The term triple top refers to three consecutive peaks at a similar level. Until its recent breakout above $10,500, BTC was at risk of seeing the dreaded technical pattern.<\/p>\n
Overall Optimism In The Cryptocurrency Market<\/p>\n
The price of Bitcoin was stuck in a two-month range since May, struggling to see much volatility. It remained relatively stagnant in the $9,000 to $9,500 range, consolidating under the $10,500 resistance level.<\/p>\n
But when an asset consolidates under an important resistance level for a prolonged period, it raises the likelihood of a breakout.<\/p>\n
Following Bitcoins abrupt increase to $10,900, traders, investors, and technical analysts responded positively.<\/p>\n
Barry Silbert, the CEO of Grayscale and major crypto VC firm DCG, said the next resistance for Bitcoin is at $13,000.<\/p>\n
Rafael Schultze-Kraft, the chief technical officer at Glassnode, shared a chart which shows low resistance or selling pressure above $10,900. That could indicate that the recent upsurge was a critical breakout to sustain the momentum of Bitcoin.<\/p>\n
What Is To Come In The Future?<\/p>\n
Investors appear to be expecting two things following the strong Bitcoin rally. First, some investors anticipate alternative cryptocurrencies to underperform. Second, market research firms foresee a room for a bigger rally, based on strong fundamentals.<\/p>\n
Ari Paul, the CIO at BlockTower Capital, explained prior to the rally:<\/p>\n
A big part of altcoins rallying for the last few months has been BTC in a tight range. IMO, most alts likely to underperform BTC if it breaks out in either direction.<\/p>\n
As the momentum around Bitcoin continues to build, Glassnode researchers emphasized that on-chain fundamentals of Bitcoin are only strengthening. They said:<\/p>\n
With BTC breaking $10k and on-chain fundamentals growing stronger, Bitcoin hit one of its highest GNI scores this year - pushing deeper into the bullish regime.<\/p>\n
But in the near-term, cryptocurrency trader Scott Melker explained that Bitcoin has to close above the $10,500 level at a higher time frame. A close of the daily candle above it would confirm a proper rally. He wrote:<\/p>\n
Bitcoin just made a macro higher high for the first time in a year. I like to wait until a candle closes for confirmation, because a close below that red line would be an epic bearish SFP. Today is the moment of truth.<\/p>\n
While some traders are seemingly taking caution at a big resistance area, other investors and on-chain market researchers foresee a stronger rally ahead.<\/p>\n
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