Bitcoin continues to rise, breaking the $ 10,000 and $ 11,000 levels, currently trading at $ 12,585, a new high for 2019. BTC transactions remain near their peak, namely over 388,000 in 24 hours. For the same period, the major digital asset reached a growth of nearly 10% and a market capitalization of 223.07 billion dollars.
But even more strikingly, the current price rally led to a jump in mining, sending the BTC hashrate (the processor power unit in Bitcoin network) to all-time record values above 64 EH/s.
The mining peak, while the reward for Bitcoin block is still 12.5 BTC, shows some confidence in future price action. Miners have a chance to make a significant return before halving in 2020. Current prices are approximately 3 times higher than the breakeven market price for Chinese miners and may invite more pools to come online.
Many experts believe that Bitcoin (BTC) is run by FOMO at this stage, as the market repeats the situation by the end of 2017. The excitement of the Facebook’s Libra coin and the potential crypto ban in India are also cited as major rally catalysts.
What’s more is actually behind the Bitcoin rally?
Apart from the aforementioned reasons, here are some that I think are crucial for the latest appreciation:
Tether (USDT) record supply: USDT-based trading remains a key factor in ensuring sufficient liquidity for the BTC. In recent weeks, new stacked prints have increased the Omni layer supply of USDT to above 3.54 billion, with another 900 million in the Ethereum (ETH) network.
Self-Fulfilling prophecy: BTC is able to add hundreds of dollars within one hour, and the breakthrough above the $ 10,000 psychological level is certainly encouraging. Adding activity from bot-trading to the mix can move the prices even faster.
Altcoin’s season is too late: Bigger profits are currently being gained with Bitcoin’s growth, while the altcoins remain volatile and offer only sporadic profits, highly unpredictable.
Exchange limiting US traders: With less US-based trading for altcoins and tokens, speculation is naturally shifted to the leading coin. At the same time, Asian markets are reviving and increasing volumes for BTC speculation.
The growth can continue up to $ 13,000
Quite technically, Bitcoin grew strongly for 8 consecutive days, the longest period of uninterrupted growth since December 2017. Apparently BTC/USD feels comfortable with the formed bottom at 10,000, so it provides a lot of support behind the bulls. And this logically implies further movement to the north with the nearest target around $ 13,000 region.
However, it should be noted that the main coin is quite overbought on all timeframes, making it vulnerable to downside correction. First support is at $ 12,133, where Bollinger Bands’ upper boundary is located on daily chart. A persuasive break below will clear the way to the next bear’s target at $ 11,200. There merges 78.6% Fibo level of the last drop of $ 11,361 to the bottom of $ 10,622 and the 50-day SMA on the 1-hour chart.
Other areas that need to provide support are $ 11,000, $ 10,800 and $ 10,400.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.