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.

Winklevoss Twins: Wall Street Has Been “Asleep at the Wheel” Regarding Bitcoin

Michael LaVere
  • Winklevoss Twins say Wall Street has been "asleep at the wheel" in acting on bitcoin.
  • Retail investors hold an advantage over institutions in the crypto marketplace. 

Cameron and Tyler Winklevoss, who founded the cryptocurrency exchange Gemini, said that Wall Street has been “asleep at the wheel,” in regards to bitcoin in their most recent interview. 

Sleeping on Bitcoin

Speaking with CNN Business on Aug. 22, the Winklevoss Twins explained the value of bitcoin as an investment, while giving their opinion on the risks of the cryptocurrency industry in comparison to the traditional financial sector. 

They were also critical of the established market’s slow acceptance of bitcoin and cryptoassets, claiming that Wall Street has fallen behind in that regard. Tyler Winklevoss argued that retail investors have had the edge of institutions in the market of crypto through their willingness to explore the new asset class. 

He continued, 

“Unlike the internet, which you couldn’t buy a piece of, you can actually buy a piece of this new internet of money. It’s still a retail-driven market, from day one [...] and a lot of people have done really well. Wall Street has been asleep at the wheel.”

In addition, the twins claimed not to be deterred by the high price volatility of bitcoin, and said the risk of missing out was much more compelling, 

“We had to invest because we were afraid of missing out, we couldn't miss out on this future.”

The twins also compared bitcoin to gold, which is becoming a more common financial analogy as investors and analysts view BTC as a digital store of value.