Bitcoin (BTC), which is the most dominant cryptocurrency in the world, has briefly broken its consolidation phase by reaching an all time high of $70,00. Bitcoin’s capitalization, which has risen to $1.3 trillion despite resistance near this point, is a testament to its upward momentum.
The cryptocurrency is facing a double peak in the same zone of price after almost three-years. It must overcome this significant obstacle to consolidate its price above $69,000, and pave the path for future price gains.
Bitcoin Records New Record
Bitcoin has experienced a 2% upward trend in the last 24 hours. This led it to surpass the $70,000 mark for the first. The cryptocurrency previously reached $69300 Tuesday, indicating its growing strength. But the $69,000 barrier has proven to be an extremely strong resistance, leading to increased market volatility.
Bitcoin’s consolidation is further complicated by the formation of a double-top in this zone of price over a 3-year period. It is important to break through this resistance for Bitcoin’s price to consolidate and gain a solid base for future gains.
The short-term success of Bitcoin spot ETFs (exchange-traded funds) has generated investor anticipation and boosted investor confidence.
Investors betting on Bitcoin’s long-term prospects have made it appear that the cryptocurrency will soon overcome its current resistance and continue its upward trajectory. This positive sentiment is a good backdrop for Bitcoin to make a breakthrough.
Bitcoin’s rapid drop to $68,000 was a result of its short touch with $70,000. It is unclear when and how much it will consolidate above the resistance level. Market watchers are keeping a close eye on Bitcoin’s price performance in anticipation of a possible breakthrough which could lead to further gains.
Chart from TradingView.com, image from Shutterstock
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