Bitcoin approaches US$12,000, needs to break through to properly rally
Two big trading sessions almost exactly 24 hours apart from each other have fuelled Bitcoin to near US$12k.
Bitcoin just went and got itself all juiced up on sentiment and Tethers, and then chewed its way through US$11,000 to $12,000 in an hour flat.
At the time of writing it's calmed down somewhat, but is still snarling and bristling at $12,000.
That coin's got issues.
What will it take to get back to $14,000?
The bounce undoubtedly comes as a relief to everyone who was eyeing the uncomfortably close psychological water level of $10,000, and it helps Bitcoin breathe a little easier. But let's face it, Bitcoin demands more than just some extra breathing room. We want to know if and when it's going to go back to $14,000 and higher.
It's still tough to say.
Bitcoin is currently encountering some resistance at $12,000 and needs to get through that before it can do anything else. From there, it has to get to around $12,500 according to CoinDesk, at which point it's looking good. But the markets also need more of a follow-through than just profit taking, and a drop back below previous support around $10,800 would not bode well.
It's worth noting that this most recent big green Bitcoin candle, from $11,400 to $12,000, came almost exactly 24 hours after the previous jump from $10,800 to $11,400. It suggests that this may be a similar set of buyers as yesterday – probably somewhere in Asia based on the timing of it.
Either way, jolly green candles notwithstanding it's too soon to say whether all this is about to propel Bitcoin back to $14,000, and trading volumes are still more sporadic and generally lower than they were in the recent $14,000 mania.
This suggests that, as Galaxy Digital's Mike Novogratz suggested to Bloomberg, Bitcoin will remain in the $10,000 to $14,000 range for some months, and that major breaks outside of that will take time.
Then again, there's still time for a sharp rise or fall in the next week. A full 40% of Bitcoin's gains in 2019 to date have occurred on weekends, although the reasons for this are unclear, so the next few days could see some heavy trading.
Disclosure: The author holds BNB, BTC at the time of writing.
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