The price of Bitcoin has broken through the significant $9,000 resistance level this past weekend and continued on the run all the way to a high just shy of $9,400. The move pushed the value of the overall cryptocurrency market to nearly $300 billion, a level it hasn’t touched in almost a year.
It has since corrected to current levels around $9,290 after a minor correction as western markets opened today. The rally shows signs of Bitcoin returning to bullish territory after a bad start for June that saw the coin drop below $8,000. During midweek last week, Bitcoin began climbing from $7,700 in a rally that quickly gathered momentum and culminated in huge push this past Saturday that helped it break through $9,000.
Where to now?
As usual, most financial analysts have differing ideas about where the cryptocurrency market may go from here. Speaking to crypto news website CNN, eToro analyst Simon Peters stated a belief that Bitcoin is still “due a significant correction still and prices could fall back to as low as $6,500 before the next major rise.”
Continuing, he reiterated a common assertion that the current bull market could be a result of the ongoing U.S.-China trade war, noting that “..some investors will naturally be spooked and are seeking a safe haven in assets like crypto.”
On the bullish side, Genesis Global CEO Michael Moro has noted the added benefit of institutional investment as a key driving factor in this recent bull run. Speaking to MarketWatch, Moro compared this current run to the 2017 run that was driven by ICO hype and international retail demand. “This time around, however, we believe that institutional money is playing a much bigger role than it did in 2017, which is evidenced by CME’s record of futures volumes,” he concluded.
New resistance has now formed at $9,400, a point Bitcoin briefly touched before retracing to below $9,300. Above this level, the top line of the ascending channel at $9,550 could present further resistance.
On the downside, $9,250 has helped support the Bitcoin price for now, with the previous $8,800 level offering support below that. With upside momentum still strong and general positive sentiment in the community, BTC looks in good shape to test $10,000 soon – a level which, if breached, could ignite a powerful new rally.