The cryptocurrency broke its $10,000 resistance level just 15 minutes after President Trump’s Speech
Bitcoin broke through the $10,000 level yesterday, after it rose from $9,895 to $10,429 over the course of 30 minutes, in a new wave of volatility at the daily close. After a week of hovering between the low and mid $9,000s, the cryptocurrency managed to break the psychological resistance at $10k to convince traders to capitalise on the bullish technical set up. This price spike occurred about 15 minutes after President Trump’s speech on handling the law and order situation in the US.
This crucial milestone for Bitcoin can be viewed in light of the chaos across the US over the death of George Floyd at the hands of Minneapolis police officers. Cities witnessed violent protests and full-blown riots, as protesters held marches, looted businesses and in extreme cases, burned down buildings. The mayhem-filled week for the country has yet again drawn attention to sentiments of Bitcoin proponents who claim that the cryptocurrency is a “safe-haven asset” with credibility in times of crisis and can be considered as a “digital gold.”
The present price jump can also be attributed to the steady growth in Bitcoin’s futures market. Further, Bitcoin’s price action can also be a result of a large injection of daily trading volume on exchanges, such as Bitstamp and Binance. The coronavirus pandemic is yet another factor. Following the outbreak, this is Bitcoin’s highest price point since February 13.
The cryptocurrency has managed to break the $10,000 resistance level after five failed attempts to break the descending trend line throughout May. The previous time Bitcoin hit the $10,000 resistance level was on May 7, days before the halving. However, the cryptocurrency failed to hold this price point for a considerable time, and fell back to the $8,000 price range after a few days. Since then, Bitcoin has been gyrating between $8,600 and $10,000, until it broke the resistance yesterday.
Notable cryptocurrencies like EOS, Cardano (ADA), Bitcoin Cash (BCH) and Litecoin (LTC) have also witnessed a price climb of over 5% in the last 24 hours. However, it remains to be seen whether Bitcoin can continue to hold onto the $10,000 resistance point for long enough to secure solid support for climbing to higher levels.