Thursday, January 20, 2022

Bitcoin records rare 10-day winning streak as BTC price taps $42K ceiling


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Bitcoin (BTC) shot to new highs of $42,400 on July 31 in a shock assault on vary resistance which sellers did not squash.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

Bitcoin seals 10 inexperienced candles in first since 2012

Knowledge from Cointelegraph Markets Pro and TradingView confirmed BTC/USD gaining for a tenth straight day throughout exchanges, reaching $42,420 on Bitstamp.

A subsequent cooling-off preserved a lot of the features, with Bitcoin circling $41,900 on the time of writing, nonetheless up over 8% over the previous 24 hours.

In buying and selling circles, discuss centered on a uncommon efficiency for the Bitcoin day by day chart — ten inexperienced candles in a row, in any case, final occurred in 2012.

Even eight days of consecutive features are a rarity, whereas 9 have been seen solely twice. Relying on the change, the info could be barely totally different — Coinbase noticed 12 inexperienced candles one after one other in Could 2017, one Twitter person noted.

Regardless, conspicuous was on one hand Bitcoin’s power, and on the opposite the shortage of bearish promoting stress.

A look at quick exercise on main change Bitfinex underscored the present temper, with hardly any dealer keen to tackle the danger of shorting the Bitcoin spot value at present ranges.

BTC/USD shorts 1-day candle chart (Bitfinex). Supply: TradingView

“BTC simply tapped 42k as resistance for the primary time for the reason that epic drop in Could,” well-liked dealer Scott Melker summarized on the day.

“Time to concentrate.”

Cracks seem in Bitcoin’s ceiling

As Cointelegraph reported, $42,000 represents the ultimate resistance hurdle in Bitcoin’s multi-month buying and selling vary. Since coming down from all-time highs and falling via the extent, which additionally represents the earlier all-time from February, it has acted as a de facto unchallenged value ceiling.

Associated: Price analysis 7/30: BTC, ETH, BNB, ADA, XRP, DOGE, DOT, UNI, BCH, LTC

Above, orderbook data reveals, little lies in Bitcoin’s approach — $45,000 and even $47,000 might simply be subsequent, a speculation additionally supported by whale investing behavior.

BTC/USD purchase and promote positions (Binance) as of July 31. Supply: Materials Indicators/ Twitter

In keeping with the favored and traditionally correct stock-to-flow Bitcoin value forecasting fashions, spot value ought to nonetheless be a lot greater — $94,839 on Saturday.

Nonetheless, its creator, PlanB, has said {that a} month-to-month shut of not less than $47,000 for BTC/USD in August can be sufficient for progress to stay on observe.