Bitcoin (BTC) tried to clear fresh key resistance at $10,400 on Feb. 12 as its rebound, which began on Tuesday, continued to produce surprises.
Crypto market weekly price chart. Source: Coin360
BTC posts 7% daily gains
Data from Coin360 and Cointelegraph Markets showed BTC/USD briefly hit local highs of $10,495 on Wednesday. This capped a highly successful 24 hours for the pair, which just a day earlier traded at close to $9,700.
At press time, Bitcoin was hovering just below the new local highs, trading at $10,340, still up almost 6%.
Bitcoin 1-day price chart. Source: Coin360
Fears had arisen of a fresh dip for markets, with traders bracing themselves for further potential losses. In his latest analysis, Cointelegraph Markets trader Michaël van de Poppe warned that $10,400 was crucial to staving off such losses.
“The range is defined by the resistance at $10,400 and the possible lower support zones at $9,500 and $9,800. If the price can’t break the $10,400 area then it will then likely pull back to retest this area,” he summarized.
Meanwhile, Bitcoin futures reached their highest since September, with CME’s product coming within a shade of $10,600. On Monday, Bitcoin filled another “gap” left by the pause in futures trading over the weekend.
CME Bitcoin futures 6-month chart. Source: TradingView
Stock-to-flow overshoot hits 20%
Others remained bullish about the mid-term outlook, Cointelegraph reporting on optimism from figures such as Fundstrat’s Tom Lee, who believes Bitcoin will hit $40,000 before the Dow Jones hits 40,000.
Within the next six months, he recently added, Bitcoin could hit new all-time highs of $27,000 thanks to the price beating its 200-day moving average.
At current levels, Bitcoin is now over 20% higher than its predicted average according to the stock-to-flow price model. This has the potential to be significant, as stock-to-flow has historically almost perfectly tracked fluctuations in BTC/USD.
The model’s creator, PlanB, this week nonetheless stated that the pair would be above $10,000 in May, at the time of Bitcoin’s block reward halving.
The renowned analyst also predicted:
“2021: bull run starts after the halving and tops $100k before Dec 2021.”
Joseph Spezzano received a Masters Degree in computer science from The University of Massachusetts. Joseph has been working as a full-time blockchain programmer for the past 5 years. In his spare time, Joseph enjoys writing for CryptocurrencyInvestments.com and traveling.