Bitcoin and crypto markets are on the roll again today following a week of consolidation. BTC has pushed higher to tap a fourteen week high on its way to five figures, here’s why.
BTC has made another sustained move higher today as it taps $9,750, its highest price since late October. According to Tradingview.com the move represents a 6% move on the day from an intraday low of just over $9,200.
Since then it has pulled back marginally but is still trading at a high not seen for almost fourteen weeks during the Chinese blockchain FOMO. It is now just a few percentage points away from five figures again.
Coronavirus Fears
There are several reasons for the bullish momentum and while the Coronavirus may not be directly related, its impact on global economies will have some effect.
The Chinese economy is in contraction and its central bank injected the entire bitcoin market cap back into financial markets earlier this week. China has a big influence on BTC markets and the safe haven narrative appears to be strengthening as a result of a weakened local currency and gloomy economic forecast.
Technical Indicators
A slew of long term technical indicators have turned bullish over the past few days indicating that the trend has now reversed and that we are in a bull market.
Bitcoin is trading above long term exponential moving averages and a key golden cross formed on the daily chart on Sunday.
The weekly RSI is also moving back above 55 which can be seen as a bullish indicator and Guppy’s are all turning green once again.
The culmination of these key technical indicators are all adding to the momentum which could take bitcoin back to $10,000 very soon.
Altcoin Momentum
Altcoins are also driving markets at the moment as bitcoin dominance has dropped to 65.5%, its lowest level since July 2019.
Ethereum has also seen a golden cross and has broken a key psychological barrier topping $200 and XRP has had a strong week on the back of big partnership news.
Bitcoin’s two hard forks are also flying at the moment with double digit gains for Bitcoin Cash and Bitcoin SV as altcoin momentum builds.
Aside from Binance Coin, all crypto assets in the top ten are outperforming BTC for daily gains at the moment. This of course does have the effect of raising markets in general as total market cap has now hit a four month high of $270 billion.
This is all good gravy for bitcoin which is inching ever closer to five figures again.
Will BTC hit $10k this weekend? Add your thoughts below.