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Bitcoin [BTC] could pump by $1,000 to $9,500 long-term choke point if coin breaches $8,300

Febin Jose

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Bitcoin could pump by $1,000 to $9,500 long-term choke point if it breaches $8,300 level
Source: Pixabay

Bitcoin [BTC], the world’s largest cryptocurrency, registered one of its strongest rallies since 2017 in May, with the king coin’s prices breaching multiple resistances at $6,400, $7,000, $7,600 and $8,000 in the span of a month. If yet another bullish surge was to be observed, Bitcoin could break its strong resistance at $8,300, and unlike other price movements, this could be the strong boost the cryptoverse was eagerly waiting for.

According to Bitcoin’s one-day chart, $8,300 was the last long-term obstacle for Bitcoin as the next significant resistance level was over $1,000 away. This is big news as up until now, Bitcoin had multiple resistance points to break to validate its bullish move. With three strong resistance points between $6,000 and $7,500, Bitcoin had to prove its mettle to maneuver the market in its favor.

However, with the $8,300 resistance briefly broken, the next significant resistance level is over $1,000 away. If the rally stays strong and breaches the immediate resistance level between $8,385 and $8,516, prices could skyrocket to the next resistance level between $9,356 and $9,600. This is significant since the choke point for the prices lie eerily close to this level, at the $9,800 range.



Key resistance levels after the $8,300 mark | Source: Trading View

Key resistance levels after the $8,300 mark | Source: Trading View

Further, the Fibonacci resistance levels also validate this speculation. Bitcoin [BTC] prices were scaled around the 23.6% Fibonacci resistance earlier in May. It was surpassed during the price surge which saw BTC cross $7,000. The next stop is the 38.6% Fibonacci resistance, which is also the next major resistance and is around the $9,400-mark.

Tone Vays, a prominent Bitcoin analyst, was of the opinion that the move could see a price pullback as well. According to him, if Bitcoin’s bottom was in, the king coin might reach the $9,000 price point swiftly, observe a major pullback, and then hit a new high low in the $6,000 region. He said,

“It would consolidate below the $9,442 resistance line for a period of 9 months, before breaching the 38.6% Fibonacci resistance.”





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Febin Jose is a full-time journalist/editor at AMBCrypto. He believes that cryptocurrencies will navigate a volatile future and that Arsenal can still win a title. Lives around the "if it sounds like writing, I rewrite it" mantra.

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JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise

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JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:



“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.





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