Bitcoin [BTC] broke above $8700 on 26th May with a surprising bullish move. The parabolic rise of Bitcoin [BTC] recorded a 110%, after which, consolidation began near the $8000 level.
Bitcoin had started to built support at around $8000 levels. While Bitcoin’s momentum has been nothing but bullish since the past few weeks, a break above $8500 was unlikely.
Furthermore, the break-out has been supported by a further increase in demand as Bitcoin [BTC] has held the parabolic gains. Bitcoin has risen unprecedentedly without any significant pullback. It has only taken temporary stops to consolidate and then records another leg-up.
Failed Pullback Price Action
Bitcoin price attempted a brief pullback attempt on 28th May 2019 as it fell by 2.38% on the four-hour chart to test $8550. However, the move was backed by instant buy volume as the market recovered above $8700.
The price of Bitcoin [BTC] at 16 Hours UTC is $8710. It is trading at par with yesterday’s price at this time.
Mati Greenspan, Senior Market Analyst at eToro, tweeted about the pullback event on Bitcoin
“Failed Bart pattern. First attempt at a pullback was rejected. This market has no fear!!”
Furthermore, for any asset, even in a bull market, a pullback is necessary for its sustainable increase. It forms higher highs and higher lows. However, building lows is also essential to the rise as well.
Tone Vays, crypto-trader and chart analyst noted,
“if this bull run continues closer to the halving hype then there may not be a significant pullback and the halving hype can drive Bitcoin into yet another bubble.”
The traders are expecting a significant pullback in Bitcoin [BTC] anytime as the rise can lead to unstable economic impacts in and around the cryptocurrency markets. Nevertheless, Bitcoin has been relentless as it continues to hold its gains.
However, a break above $10000-$11000 is also on the cards with the new-found vigor with institutional and retail investors.
Do you think Bitcoin [BTC] will move past $10000 before a pullback? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst 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