Bitcoin price edged higher on Wednesday and once again prepares to attack 13,000 USD mark, demonstrating strong momentum. The cryptocurrency is traded with an increase of 4.8% to 12,989 USD at 07:15 a.m. ET.
Since dropping below 10,000 USD, the Bitcoin price has surged by more than 30% in eight days.
Technical analysts have said that the recovery of Bitcoin from relatively large short term corrections have strengthened the foundation of the current rally of the asset. While the surge in the bitcoin price over the past two to three months is widely believed to be technical, there are important contributing fundamental factors that have acted as potential catalysts of the entire crypto market.
Along with the consistent inflow of institutional capital through custodian solutions, investment vehicles, and futures markets, the hash rate of the Bitcoin blockchain network has recorded its fastest rate of growth in history. The Bitcoin’s total hash rate (on a 7-day moving average) has increased by 13.11 EH/S over the past 30 days, which is its fastest pace ever. An increase in the hash rate of the Bitcoin blockchain suggests growth in the amount of computing power securing the network, which historically has indicated an overall increase in confidence from the mining ecosystem.
Following the latest trends in the crypto market, Bitcoin dominance rose to 65%.
Crypto market recap
The cryptocurrency market is up, despite the negative performance of almost all Altcoins. The surge of the Bitcoin dragged the crypto market value to 355 billion USD, adding more than 20 billion USD since the beginning of the week.
Ethereum is down by 1.1% to 309.41 USD. The cryptocurrency price has traced a bearish trend line over a day after mounting as high as 318 USD and then moving below 310 USD. All these movements come despite the news that Singapore’s Stock Exchange backs the new Ethereum security token platform. The 1X platform has gone live Wednesday with its first listing of an Ethereum token, purchasable with Singapore dollars.
Ripple’s XRP is down by 0.5% to 0.3957 USD. After initially maintaining its price range above 0.40 USD, the XRP took a sharp fall at 0.3943 USD with a decrease of 2.19%. The coin struggled to move above 0.40 USD but after a bit of price turbulence, the price trend shifted down near 0.39 USD. The coin since then has not touched 0.40 USD price mark
Litecoin is down by 1.2% to 119.16 USD, while EOS is down by 2.2% to 5.84 USD.
Meanwhile, the worst performer among Top 10 cryptocurrencies is the Binance Coin, which edged lower by 2.9% to 32.52 USD.
Bitcoin SV, TRON, and Cardano are also down by about 2.5%.
Yesterday, we saw a solid upward move in bitcoin price above the 12,000 USD and 12,200 USD resistances. Later, the cryptocurrency corrected lower from the 12,800 USD resistance area. It traded below the 12,500 USD level and tested the 12,200 USD support area. The bulls remained in action and the price remained supported above 12,000 USD. Moreover, there was no close below 12,000 USD and the 100 hourly simple moving average.
As a result, there was a fresh increase above the 12,500 USD resistance level. The price gained bullish momentum and broke the 13,000 USD level (target discussed in yesterday’s analysis). Besides, it traded close to the second bullish target of 13,200 USD. A new weekly high was formed at 13,152 USD and the Bitcoin price is currently correcting gains. It is trading near the 12,900 USD level plus the 23.6% Fib retracement level of the recent wave from the 12,147 USD low to 13,152 USD high.
On the downside, there are many supports near the 12,800 USD and 12,600 USD levels. Moreover, there is a major bullish trend line forming with support near 12,700 USD. The 50% Fib retracement level of the recent wave from the 12,147 USD low to 13,152 USD high is also near the 12,650 USD level to act as strong support.
If there are a downside break below the 12,600 USD and 12,500 USD support levels, the price could revisit the 12,200 USD support area. On the upside, an initial resistance is near the 13,200 USD level, above which there are chances of a push towards the 13,500 USD level.
Looking at the chart, the Bitcoin price seems to be preparing for more upsides above the 13,200 USD level. In the short term, there could be a downside correction, but the bulls are likely to defend the 12,800 USD or 12,600 USD support area in the coming sessions.