For the first time in 2020, Bitcoin has hit the $10, 000 mark considered by many analysts to be a key psychological resistance.
This means bitcoin has risen over 40% in 2020 alone so far.
After a massive bull run over the weekend, it was clearly that bitcoin was heading for a major break and traders were primed for a strong directional move which came sooner than expected.
SEE ALSO: Bitcoin was the Best Investment of the Decade, Says Bank of America Securities Report
While this is not the first time that the cryptocurrency has hit $10, 000, it is however the first time that the valuation is justifiable based on fundamentals of the network.
An analysis of the bitcoin blockchain reveals the following:
- About 500, 000 addresses hold over 180, 000 bitcoins bought around $9, 800 indicating a think resistance level
- A large volume of 375, 000 bitcoins was previously purchased at the current price which may signal the $10, 000 as a new level of resistance
- Almost 1.1 million addresses bought over 1.1 million bitcoins between the $9,200 – $9, 500 which is considered a very strong support level
- There were few bitcoins bought between $9, 200 – $8, 600 which would form a new support level in a worst-case price decline scenario
- A large number of holders bought during the last 3 month dip from 21 million to 24 million addresses. This indicates accumulation and as a result a momentum gain
- The significant amount of holders sitting on positions bought slightly above current prices may be causing downward price pressure as some of them look to break-even around the $10,000 range.
- The large increase to 3 million bitcoin addresses may create upward price pressure as they look to buy in again following current bullish trends
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