Bitcoin Price Reaches $6.1k, Market Waits for Next Move

Bitcoin’s (BTC) price has breached $6,000 in the early hours of May 9 (UTC), following several dogged attempts to get above the key level. The rally ended at exactly $6,100 on some exchanges (Bitstamp pictured below).

9 may btc pa(source: TradingView.com)

A light support/resistance zone has formed around $5,960 is being tested at time of writing. The local uptrend and a couple of additional S/R areas lie just below, with $5,600 being the local bottom.

Although it is anybody’s guess whether or not the price rises can continue, one thing is certain: Bitcoin has finally and well entered a knot of serious resistance based on historical price action.

Whether or not Bitcoin’s rocket ship continues for a while longer, it does seem virtually impossible that this resistance will be completely broken now (say, somewhere above $6,500) without some cooling-off.

9 may btc pa(source: TradingView.com)

Looking at some high time frame (HTF) charts - below the daily - we can see indicators suggesting that Bitcoin is getting overheated. Falling strength on the Relative Strength Index (RSI) may point to a coming correction; overall trading volume, however, has remained pretty strong and even growing since the April 2 pump that altered the course of Bitcoin. (Chart below again depicts Coinbase, a good representative of genuine trading volume.)

9 may btc pa(source: TradingView.com)

This is to say that it is nowhere guaranteed that price has topped off, even in the short or medium term (the long term trend is almost certainly bullish now!).

If we take a moment to concentrate on a very HTF chart - below the weekly - we can see that Bitcoin’s RSI has broken clean through a critical resistance zone, which has a history all the way back to 2015(!).

9 may btc pa(source: TradingView.com)

If Bitcoin were to correct here, we might easily expect a successful retest at around 52 on the RSI. Bitcoin had been stuck under this level for about a year and four months - now with the resistance cleanly broken, we may expect it to serve as new support.

No matter what happens, it now seems inconceivable that Bitcoin’s 2018 bear market is not definitively over - although nothing is impossible.

The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

Bitcoin's Price Stability Is a ‘Good Thing’, Bitcoin.org Co-Owner Argues

Francisco Memoria

Cobra Bitcoin, co-owner of the website originally registered by Bitcoin creator Satoshi Nakamoto Bitcoin.org, has argued that Bitcoin’s price stability is a “good thing.”

On social media, Cobra Bitcoin revealed he hopes the price of BTC stays in its current range over the next three to four years, as it allows those with good intentions to accumulate more cryptocurrency while pushing out those who see bitcoin as a get-rich-quick scheme. Per Cobra, if you’re in bitcoin “you should be thinking in decades.”

The co-owner of Bitcoin.org noted that the cryptocurrency community is lucky Robinhood is letting retail investors with fear of missing out (FOMO) rush into the stock market, as while most will lose money they “at least won’t be competing with us to accumulate bitcoin.”

Cobra added that the biggest benefit will, however, be anxieties regarding BTC’s price disappearing and bitcoiners start focusing more on use cases and fundamentals.

The biggest benefit though will be the collective mental health of the Bitcoin community: if the price stays more or less the same, price anxiety will disappear and more Bitcoiners will talk about use cases and fundamentals, instead of being hyper-focused on the price.

The price of bitcoin, according to CryptoCompare data, has been ranging between $9,000 and $10,000 since it recovered from the March market crash that saw it lose 50% of its value in a two-day period. Since the beginning of this month, the cryptocurrency’s price seemingly entered a shorter range, between $9,000 and $9,500.

As CryptoGlobe reported, the range-bound movements have seen BTC’s volatility drop to a 15-month low. Over the last few years, when BTC’s volatility dropped significantly it preceded significant price movements.

Featured image by Austin Distel on Unsplash.