Bitcoin [BTC] extended its impressive weekly rise to the weekends as well. As the week nearly comes to an end Bitcoin has already recorded a gain of 12%. While most of it can be attributed to the evident demand on Bitfinex, the overall market sentiment towards Bitcoin was positive as well.
Moreover, Bitcoin [BTC] crossed $6000 levels on Bitfinex. The ‘weighted average’ price of Bitcoin on CoinmarketCap at 3: 00 Hours UTC on 4th May 2019 is $5860. It is trading 5.33% higher on a daily scale. The Bitfinex Premium is currently around $350, about 5% of the price.
While the market is still in the green, some (rather less number of people) are also suggesting a correction soon. The psychological levels from November 2018 price crash might provide some insight into the case.
The break above $4000 above $5000 was a positive indicator towards higher price movements midst the impending bear market. Moreover, a break above $5600 resistance is also significant in that it was the last support that Bitcoin held before bottoming.
Moreover, $6400 was the long term support for Bitcoin during October and beginning of November in 2018. Alex Kruger, a trade analyst tweeted:
$BTC now at $5750, the 2018 low prior to the November crash. – The 2018 bear trend ended once above $4200. – Above $6400, 2018’s most traded price, it’s a bull market. Above $6400, 2018’s most traded price, it’s a bull market.”
Furthermore, prior to this bull run Vinny Lingham, a leading analyst had noted earlier about the importance of the $5700-$6200 level resistance. He also added:
“That said, if we can break $6200 for BTC, it will likely mark the start of another major bull run and could run hot and high..”
Hence, as the traders almost absolute certainty of the bottom being in on Bitcoin, a break above the critical resistance zone is imperative to confirm the bull run.
What are the important levels or indicators to confirm a bull run according to you? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com