- Bitcoin broke through an important resistance at USD 8,400, surprisingly rising to over USD 8,500.
- Bitcoin SV, Dash and Zcash are the Altcoins that have the largest gains within the top 30 cryptocurrencies.
Bitcoin surprisingly marked a price increase of more than 5.88% within the last 24 hours from USD 8,135.67 to USD 8,501.27. Many experts in the industry had identified an important resistance at USD 8,400, which was thus broken within a few hours.
Despite the bullish mood in the market and the positive development since the beginning of the year, experienced traders urge caution, as a correction could follow immediately.
Are political tensions again responsible for the development of the crypto market?
As we have already reported, the political unrest between the United States of America and Iran has caused the Bitcoin price to rise. The economic uncertainty has caused Iranians to flee into Bitcoin with their remaining capital. In the meantime, Bitcoin has been traded on the LocalBitcoins exchange for a price of more than 24,000 USD.
Since Donald Trump has called off a war with Iran for the time being, the price of gold has fallen noticeably. Bitcoin has not yet reacted, however. A possible reason for this could be that a potential trade agreement between the superpowers USA and China is looming, which could have strengthened investor confidence to take risks in trading. This could have injected new capital into the crypto-market.
Experienced trader Josh Rager describes that Bitcoin must break through the next resistance level at $8,750 to reach the physiologically important $9,000 mark. If Bitcoin closes below the $8,400 support level, the price could drop again to the last resistance level of $7,900.
$7900s acted as support at the previous range in Sept-Oct 2019 & is currently acting as support now as the POC (point of control since May)
Test of $8750 should be next, test and close above should rip up to $9050+
If price breaks down, $7900s is support pic.twitter.com/yuf8G9yaPl
— Josh Rager ? (@Josh_Rager) January 14, 2020
The Bitcoin Trader NebraskanGooner urges caution. According to him, the initial support is close to the USD 8,460 and the 23.6% Fib-Retracement level of the recent recovery from the USD 8,038 low to the USD 8,627 high. He would not be surprised if a large selling wave follows soon and the Bitcoin will move sideways along the $7,800 market in the coming months.
Datamish data shows that a total of $38 million USD in short were liquidated on the BitMEX exchange in the last six hours. This may also have led to a price increase. The Bitcoin Trader CryptoHamster thinks that a correction is imminent and that this sudden price increase is by no means sustainable.
The growth will unlikely be sustainable. A pull-back is likely to happen soon (maybe, like "now").
Check the shorts <50% on both Bitmex and Binance and the Funding Rate above the zero level.
Also, some bearish divergences on short TFs started to be formed.$BTC $BTCUSD #bitcoin pic.twitter.com/McREF50keY
— CryptoHamster (@CryptoHamsterIO) January 14, 2020
Altcoins follow the upward trend of Bitcoin
In case you're wondering why Dash gained ~60% in price & climbed six rankings on @CoinMarketCap within the last 14 days:
— Amanda B. Johnson (@AmandaB_Johnson) January 13, 2020
In the legal case of Craig Wright, the mastermind behind Bitcoin SV and self-proclaimed Satoshi Nakamoto, speculation and rumors continue to drive the price in recent days. Zcash has recorded unusually high trading volumes in the last 24 hours. The experienced trader SalsaTekila suspects that many miners will sell Zcash to profit from the short-term pump.
High volume pumps historically call the top on $ZEC, why do you think that is?
Here's my guess: just like Ripple dumps $XRP on the crowd, ZEC miners dump ZCASH on the crowd.
Think outside the crowd full of paid shills. pic.twitter.com/BvAgrkhh9x
— SalsaTekila (JUL) (@SalsaTekila) January 13, 2020
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Some industry experts see the upcoming Bitcoin halving as a possible price driver for Bitcoin. In the past, experience has shown that the price of Bitcoin after halving has increased, but there is no guarantee or causal link. It remains to be seen whether Bitcoin undergoes a correction or can maintain the new level.