Bitcoin Price Breaks Above 18.000, What’s Next?

Bitcoin price breaks above the 18.000 mark after a strong move yesterday that first breached the 17.000 resistance during the European session; a move that sparked a new round of strong buying spree that send the bitcoin price to almost three-year highs.

Bitcoin bullish momentum started on October 21, after PayPal announced that will allow it’s users to buy hold and sell cryptocurrencies. The news drove the price above the resistance at the 13.000 mark. Positive news on the coronavirus vaccine front was the next catalyst that boosted risky assets and cryptocurrencies but put pressure to safe-haven assets such as gold. Sentiment boosted further by a clear victory Biden victory in the US elections. The speculation around a central cryptocurrency CBDC from many central banks CBDC around the globe have shifted also investors attention to the existing cryptocurrencies.

As of writing BTCUSD price is 3.11% higher at 18.221, at these levels, almost 98% of all Bitcoin addresses in existence have turned into a profit.

Bitcoin Capitalization Hits All-Time Highs

Meanwhile, the bitcoin capitalization hit fresh all-time highs surpassing 337 billion as the number of bitcoin in circulation are higher than December 2017. In December 2017 the bitcoin capitalization reached 328.89 billion.

Bitcoin rally the last two days has also lifted cryptocurrencies across the board. Ethereum price today is 0.58% lower at 480.01, Ripple is 2.21% lower at 0.2958, while Litecoin is 4.36% lower at 73.05. The global cryptocurrencies market capitalization increased by 5.50% today reaching 504.56 billion.

Tyler Winklevoss the founder and CEO of Gemini, welcomed today’s bitcoin move in a tweet saying “Bitcoin is knock, knock, knocking on 18k’s door” and in a second tweet added “The media has completely missed the recent Bitcoin bull run. This is the problem with a centralized media complex, it chooses the narrative it wants, not the one that’s actually happening. Time to decentralize.”

Bitcoin Technical Analysis

Bitcoin price trades 2.97% higher at 18.205 extending yesterday’s gains as the bullish momentum points to higher levels. Bitcoin has gained 16.93% the last five days, 50% the last month while it is 148% higher since the beginning of 2020.

Many analysts now expect a short correction before an attempt to all-time highs. The technical picture is bullish and any corrections might considered as a buying opportunity.

The intraday high at 18.483 would provide the first resistance level, while a break above might challenge the 19.000 psychological mark. A break above would attract fresh buyers and the next target would be 19.135 the top from December 19, 2017.

In case of a correction, the first support area stands at 18.000 round figure and then at 17.041 the daily low. A break below might test 16.592 the low from yesterday’s trading session.