Bitcoin (BTC) has briefly achieved a price of very near $13,000 per bitcoin, in the early hours of June 26 (UTC). At this stage, the leading cryptocurrency has very nearly returned to a status of “price discovery,” where no previous price history can be referenced to build a market structure.
So where will this rally end? At this point, it is hard to say. BTC passed one of the few remaining resistance levels last night, between roughly $11,200-800 but precisely at $11,500.
As covered in yesterday’s BTC price analysis, $11,500 marked the 0.50 Fibonacci retracement level from the previous December 2017 highs all the way to the December 2018’s lows. This was one of the few relevant price targets left to structure the current market, and it was almost effortlessly defeated last night during the latest breakout.
What’s more, $11,500 marked an area of price resistance and support from the 2018 bubble pop, and has been easily sliced through providing almost no resistance.
Technical analysis is becoming less and less useful in this state of euphoria. Where might this rally end? First, we might look for the formation of another bullflag just under $13k. This could certainly signal another leg up, as all bets are now off for price gain. We might also look for a retrace and retest of the zone just breached.
The next, and one of the last price targets above (one of two, to be precise) is roughly $13,500, at the 0.618 Fibonacci retracement point – the so-called “golden pocket.”
This mark, at time of writing, lies a mere 8% higher than the current price (a figure which will no doubt soon be out of date). It seems fairly likely that Bitcoin will at least hit this mark before any retracement.
Beyond $13,500, $16,300 alone stands in the way of all-time-high prices near $20,000. However, the leading crypto is approaching record highs (above) on the daily RSI – and even this rally, like any, will eventually end and correct.
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