Bitcoin has broken weekly resistance and made over 5% during this move, lifting the entire crypto market with it. Analysts are predicting further momentum ahead for the king of crypto.
With a further $10 billion added to cryptocurrency markets, things are starting to look healthy again, especially for Bitcoin which has just reached its highest price for over six weeks.
The 5% gain culminated with a peak of just below $11,500 on Saturday, and a return above $11,400 on Sunday as the asset held on to all of these gains and did not do its usual six-hour later dump. Since Thursday last week, when CoinGape predicted a breakout, Bitcoin has made almost 8% to current prices which are around $10,380 according to Tradingview.com.
Bullish RSI Close Could Push Bitcoin to $16k
Trader and analyst, Mr. Anderson (@TrueCrypto28), who has almost 60k followers, remarked on the weekly RSI pivot which he added is common with ultra-bullish BTC moves. He added that a weekly close of over 63 has always provided another jump up to 70 which would put prices in the $16,000 level.
#BTC Weekly RSI
A few wks ago I explained that the Bulls would defend $10.1k b/c they had too
Now BTC has given us a wkly RSI pivot that is extremely common w/ Ultra Bullish #BTC moves
A wkly RSI close of 63+ has always provided another LEG up & a 70+ close gives you $16k+ pic.twitter.com/9w8tWgeJpW
— Mr. Anderson (@TrueCrypto28) October 11, 2020
The relative strength index is a momentum indicator used to measure the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of Bitcoin.
In order to get to its second-highest price ever, Bitcoin first needs to break resistance at $12k and then move above its 2020 peak to print a new higher high. From then on, the next target is the 2019 peak which was just below $14k.
$12k First Not a Problem
Fellow analyst Josh Rager observed the bullish weekly close adding that there is no reason why BTC cannot push up to the $12k level.
“Price is back up in previous range prior to breakdown and personally, I don’t see why we can’t see $12k this week,”
Heck of a weekly close for Bitcoin
Price is back up in previous range prior to breakdown and personally, I don't see why we can't see $12k this week
Take it day by day, level by level pic.twitter.com/vzVIKiV5Ku
— Josh Rager 📈 (@Josh_Rager) October 12, 2020
The fact that Bitcoin has held gains for two days now is a strong indicator that sentiment is building. The Bitcoin Fear and Greed Index has ticked up into the neutral zone now at just over 50 after spending most of the past month registering fear in the low 40s.
Tradingview’s technical indicator is also flashing a buy signal on the daily time frame and a strong buy signal on the weekly view.