Bitcoin is maintaining its recent policy of just not caring.
Many of our community will be suffering from oxygen deprivation as the G-force of bitcoin’s upward movement cuts off the blood supply to their brains. For those still conscious, here’s what’s going on:
Yesterday saw bitcoin soaring another thousand dollars, at one point topping $8,000 before closing slightly below. Today has seen the same action continue, with the price at the time of writing almost $8,300. (This is likely to go out of date fast.)
At every step since the beginning of April, we – in common with every other analyst – have expected a pullback, or at least a period of consolidation. It hasn’t happened, not for more than a few hours. Every resistance level has fallen, bitcoin slicing through them like a hot knife through butter on a warm day in the Sahara.
There’s little resistance to $10k now, which itself can only really be considered resistance as a psychological level. Given the strength of resistance at $6k and how long it should have taken bitcoin to break it, we can’t assume that any other resistance zone will prove a problem. We know that there must be a pullback sometime – there must be. But we can’t suggest with any confidence where that will be. Bitcoin has torn up the rulebook in the last few weeks, and conventional market patterns have been meaningless.
While a brutal correction ought to be on the cards – we’ve had no pullback since the dip to $5,000 in late April – we just don’t know whether it will happen here, at $10k, at $20k, or higher. Once we top $11-12k, there’s very little in the way of resistance at all, just clear blue sky above.
As good as it’s been for bitcoin, it’s been bad for the alts. They have suffered badly in BTC terms: no one wants to be out of BTC here. Most have held level in USD value, at least. When bitcoin finally pauses we might see the fabled Alts Season, but again – we can’t know when that will be.
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