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

Bitcoin price BTC

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

Bitcoin Price Daily Chart for July 28

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.

Dalmas Ngetich

Dalmas Ngetich

Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies. Enjoying the opportunity to help educate bitcoin enthusiasts, he writes insights and coin price chart analysis.

Related News

Hot Stories

Ripple price analysis: Bullish wave surpasses $0.3734 hurdle after a recent upturn
3 Next Big Altcoins to Pump December 2022: Apecoin (APE), Dogecoin (DOGE), and Orbeon Protocol (ORBN)
Price Prediction: Orbeon Protocol Could 600x, Ethereum Could 5x Over the Next Three Months
Cryptocurrency In Italian Economy: Everything You Need To Know
leaderfinancing.com Review: Find the best and most diverse variety of assets - LeaderFinancing Review

Follow Us

Industry News

Is SBF the FTX funds drainer?
Another stablecoin, this time from Cardano
Why is Crypto crashing? November 2022 coverage
Startups to Watch in Crypto this Week
Who hacked FTX? Latest on-chain insights create a new twist

Add Your Heading Text Here