Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


Bitcoin Booms to $11,400 After 12% Daily Gains

July 27, 2020 at 23:11 by Matt Jackson

After weeks of relative inactivity, Bitcoin price volatility has returned with a vengeance today, first pushing through and holding the $10,000 mark before smashing $10,500 and even the $11,000 mark. It has met more resistance at $11,450, where it has previously fallen on several occasions but any further bullish momentum could carry it past this level. The next major resistance milestone lies at $14,500. This is also the target for a weekly bullish flag that Bitcoin has broken. Some analysts are pointing to $15,000 as their next target, but some are more cautious, with one prominent trader suggesting that his consortium still expects the digital currency to end the year at $7,000. The options market suggests there is just a 7% chance that BTC will reach an all-time high this year.

Bitcoin had made difficult work of breaking psychological resistance at $10,000, having made multiple attempts since the start of the year. Although its efforts were no doubt hampered by the spread of the Coronavirus in March, when BTC prices crashed to under $4,000, the digital currency has been trading between $9,000 and $10,000 since the end of May. The volatility that BTC is so well known for had disappeared. However, having taken the $10,000 with aplomb, Bitcoin bulls haven’t looked back yet.

$11,500 could prove another big test for Bitcoin. It has previously failed to hold above this level in February 2018 and again in July and August 2019. Volume still looks to be low, even compared to these previous attempts, but if the market can find elusive buyers, then there is no reason that it won’t make relatively short work and pass through this resistance, too.

Taking the March crash as the base of the pennant and Bitcoin’s attempt to break the $10,000 barrier at the beginning of May this year as the top, the currency has posted a bullish pennant on the weekly chart. Having broken out of the pennant, Bitcoin’s target sits between $14,000 and $14,500.

The rest of the market has also seen significant gains against the dollar in the past 24 hours, with a few exceptions. Litecoin, which was once the second biggest coin but has continued to slip away in recent years, is up more than 13% and has passed the $50 mark, trading at $54.47. Cardano has undergone price correction, following recent gains, and is down more than 6% in the past 24 hours. It now costs $0.139.

At 00:00 GMT, Bitcoin (BTC) had risen by 13.14% in 24 hours and is trading at $11,198.64 while Ethereum (ETH) has added 5.35% to its price and now costs $327.09. Ripple (XRP) is up to $0.227, having seen a 24 hour increase of 5.21%. Bitcoin Cash (BCH) and Bitcoin SV (BSV) were up 10.42% and 10.95% and trading at $272.78 and $210.45 respectively.

If you have any questions and comments on Bitcoin today, use the form below to reply.

Leave a Reply