Bitcoin (BTC) Price Analysis — Open Shorts or Wait for $11,000?

Price Predictions
Tue, 06/02/2020 - 11:18
Denys Serhiichuk
Can bulls continue pushing Bitcoin (BTC) to $11,000?
Cover image via www.tradingview.com

Disclaimer: The opinion expressed here is not investment advice it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

The start of June has turned out very positive for the cryptocurrency market. What is interesting, altcoins have kept up with the growth of Bitcoin (BTC). Bitcoin Cash (BCH) has rocketed even more, showing more than 7% growth over the past day.

Top 10 coins by Coinstats

The current blast of Bitcoin (BTC) and other assets has drastically affected the total market capitalization, which has increased by more than $10 Bln over the past day.

Cryptocurrency market capitalization

The relevant data for Bitcoin is below.

  • Name: Bitcoin

  • Ticker: BTC

  • Market Cap: $185 986 185 144

  • Price: $10,112.37

  • Volume (24h): $38 350 215 722

  • Change (24h): 5.59%

The data is relevant at press time.

BTC/USD: Is $11,000 the next stop?

Bitcoin (BTC) has come out of the consolidation channel, having broken the resistance at $10,000. The growth is unlikely to be a false breakout as it is supported by trading volume. 

BTC/USD chart by TradingView

On the hourly chart, the main crypto has entered a correction, confirmed by the RSI indicator, which is located in the overbought zone. Moreover, liquidity is not high enough to push the rate higher. Summing up, traders may expect a decline to the nearest important level at $10,000 before the rise continues.

BTC/USD chart by TradingView

On the bigger time frame, Bitcoin (BTC) still has the growth potential to retest at least the height of 2020 at $10,500. In case it holds above $10,000, the aforementioned resistance will be attained this month.

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Frankly speaking, one needs to pay close attention to the $10,000 level but, in general, it has gained enough energy to retest the resistance.

BTC/USD chart by TradingView

On the weekly chart, the trading volume continues declining, which is not in favor of further growth. Moreover, there was no consolidation period after the dump of March 12 which would have been needed to break the heights of 2019. Respectively, the maximum mark, where bulls might take Bitcoin (BTC) is around $12,000, where there is strong resistance. 

Bitcoin is trading at $10,130 at press time.

 

About the author

With more than 5 years of trading, Denys has a deep knowledge of both technical and fundamental market analysis. Mainly, he has started his blog on TradingView where publishes all relevant information and makes predictions about top coins.
Thus, his experience is backed up by working in top blockchain related companies such as W12, Platinum Listing & ICO Advisory, ATB Coin, and others, can be contacted at denys.serhiichuk@u.today.


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