Bitcoin will break US$10,000 today, unless it doesn’t

Posted: 31 January 2020 1:41 pm
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Past performance, which is no guarantee of future performance, says Bitcoin is about to crack $10,000.

Chart wisdom holds that after something's price breaks resistance, the market will re-test that price as a support level. Bitcoin doesn't seem to be in too much of a rush to do that though, and seems to be holding the US$9,400 range with a decent amount of confidence.

This is, in turn, bolstering traders' confidence.

"I do believe that if we get an upward break of $9,400 we could be testing $10,000 by the end of the day," said Quantum Economics' analyst Mati Greenspan.

"If traders can hold the price above $9,500, the VPVR shows a volume gap from $9,418 to $10,166. If buyers step in to provide consistent volume, we could see the price rise to $10,166 over the short term," CoinTelegraph suggests.

The VPVR (volume visible profile range) is an indicator of how much volume there is at certain price ranges. So where you have a "volume gap", there theoretically isn't too much trading activity to slow things down.

In this case, the gap could be a reflection of the belief that Bitcoin could quickly move from $9,500 to $10,000. And this belief could be based on evidence such as the volume gap, creating a nicely self-fulfilling prophecy.

All in all, there's enough evidence to decisively say that Bitcoin is absolutely 100% guaranteed to hit $10,000 today or tomorrow, unless it doesn't.

On a wider timeframe, Bitcoin is well and truly familiar with the $9,500 to $10,000 price range by now. In a way, the last few years can be divided into the times Bitcoin was above $9,500-$10,000, and the times it wasn't.

In many cases, when Bitcoin manages to decisively push past this area, it has some trouble going back below it again – at least for a while.

The same principle can be seen in the $6,000 ballpark (blue line). And, if you apply the same principle to drawing slanty lines (yellow), it looks quite clear that by entering this zone, Bitcoin has broken out of the downward trend that persisted since mid-2019.

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BTCUSD chart by TradingView

The mood among traders is buoyant. Now if Bitcoin goes down instead of up, everyone will just have to put their lines in different places so it all makes sense in hindsight.

And if it goes all the way back down to $6,000, commentators will once again have to trot out that "what a bargain!" schtick. Solely according to this chart though, they aren't wrong.



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Disclosure: The author holds BNB, BTC at the time of writing.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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