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.
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
NO INVESTMENT ADVICE
The Content on this website is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
Follow us on Twitter for latest posts and updates
Open a Paxful Bitcoin Trading Account today!