Bitcoin price breaks a key resistance line, next $13,800?

That the Bitcoin price is on a roll is true. Numbers don’t lie. As BTC prices soar, businesses around Bitcoin (as an enabling platform) are also flourishing. 

Lightning Network coins receive a boost

At the time of press, Lightning Network (LN)-supportive coins are rallying as well. LN is a Layer-2 scaling solution that is experimental but promises to scale Bitcoin. 

Through LN, sending BTC will be fast and cheap. Besides, prone to congestion, by-passing the base chain via a layer-2 option makes the network scalable. 

The sharp rise in Bitcoin and leading altcoin prices has once again piqued interest in crypto. 

With BTC trending above key resistance (now support) levels, the number of participants has spiked. 

Skew data shows that the number of CME Bitcoin open interest is at an all-time high. 

Bitcoin miners are net holders

Meanwhile, miners are not liquidating their holdings. Instead, they are net holders relieving the market after the bears of May and June 2020. 

From Byte Tree, the Miner’s Rolling Inventory (MRI) of the last day stands at 166, a net increase of 81.86 percent. 

With improving market conditions and flow of capital, most prefer capital gains regardless of pressing operational costs.

Stimulus Check as investments in BTC

While Bitcoin soar, it is likely that the next stimulus money from the United States government will find its way to BTC and crypto. 

In the first round, crypto exchange operators like Coinbase noted bulk Bitcoin purchases of exactly $1,200. 

With rising BTC prices, more may invest in crypto with the hopes of reaping huge profits.

Bitcoin price analysis

The Bitcoin price is now up six percent in the last trading day pushing gains against the greenback to 20 percent in the past week. 

Still, BTC under-performs ETH and is down 11 percent.

From the daily chart, the Bitcoin price is now trending above an important consolidation line as price action resumes their March-May 2020 bull drive. 

Because of gains over the weekend which spilled over to Monday, buyers are firmly in control. Notice that BTC broke above the bull flag of May-June with increasing trading volumes.

 Although prices have been volatile in smaller time frames, that bullish candlesticks are banding along with the upper BB hints of strong underlying momentum. 

As such, technically, every dip should be a buying opportunity with stops below $10,500. 

From this, buyers should target June 2019 highs of $13,800.

Chart courtesy of Trading View

Disclaimer: Views and opinions expressed are those of the author. This is not investment advice. Do your research.