Bitcoin breaks through $60,000 again – but will it hold?
Bitcoin punched through $60,000 once again after topsy-turvy couple of weeks saw the flagship cryptocurrency rising and falling between $52,000 and $59,000.
The $60k line has been repeatedly tested since Bitcoin (BTC) set an all-time high of $61,701 on March 13.
Those tests of a clear resistance provided BTC with an opportunity for consolidation, building strength and interest as it hovered around $56k and $58k in the last few days. Coiling for a strike, it made its surprise move this morning – sinking its teeth into $60,800.
Beginning the pre-dawn raid at $58,100, three hourly green candles stealthily placed it on $59,200 before a remarkable rush up to $61,312.
It proved a rude awakening for heavy-eyed bears as resistance lines were pulled back in an effort to hold BTC below $61,000. Before the weekend has even had chance to rub its eyes, it already looks very much like this is where BTC’s next battle will be fought in the coming days.
The big guns have, maybe, already fired their warning shots. Elon Musk – so often the source of a price movement with a mischievous tweet – had clearly seen the green spike as he posted “… going to the moon very soon”.
It wasn’t entirely clear, though, if his tweet was indeed referring to the sudden rise or if it was entirely coincidental and connected to a previous tweet where he was seemingly mocking Bill Gates and a potential reboot of Microsoft’s Zune project.
Although difficult to second-guess the South African entrepreneur’s social media ramblings, many of his followers took it as a Bitcoin signal.
Dramatic return
Following the dramatic return to territory north of $60,000 it would appear Bitcoin has gathered some kind of strength, although buying volume doesn’t quite appear to particularly high.
Low volume, though, is often the emblem of weekend trading, and a price surge on small buying numbers will be viewed as a positive signal from bullish analysts.
Where Bitcoin goes from here is now dependent on what mood each market around the world wakes up in.
If the sentiment is buoyant, it may well be that some regions will be waking to find BTC has a new all-time high. Given the recent consolidation prior to this breach of the $60,000, that potential outcome cannot be ruled out.
However, should enough resistance be found to peg today’s drive back or even provide a push to return below $60,000 then many global time zones will merely be looking back at a curious blip on the chart.
The weekend’s market excitement is shaping up to become one of two things – either a new high for Bitcoin, or the start of a serious test of defences being prepared at $61,000.