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Markets Report: Bitcoin price hits 1-year high as analyst mulls 30% correction

$11,000 remains in play as bears look increasingly weak unless $10,000 support falls away once again

Bitcoin is surprising everyone for a second day, reaching over $11,300 and suddenly flipping major resistance on its head.

Data from price trackers including CoinMarketCap showed newfound strength in BTC/USD continuing on July 27.

On the back of a solid weekend of gains, Bitcoin kept rising overnight on Monday, hitting highs of $11,390 — its best since early August 2019.

After weeks of price compression, bulls have returned to the driving seat, a bout of volatility which took markets broadly by surprise. Analysts previously expected a natural end to Bitcoin’s narrowing trading corridor, but the extent of the bullish breakout was unanticipated.

Now, after a correction to $10,600 on Tuesday, BTC/USD is back challenging $11,000. For popular analyst filbfilb, a realistic floor in terms of buy support was $10,400 at press time.

“There’s big bidders around 10400s,” he confirmed to followers of his Telegram trading channel. 

Eyes on $10,500 resistance

That level still leaves room for major resistance at $10,500 to remain in place, should a larger correction take hold. 

$10,500 had firmly halted previous attempts to turn $10,000 into support, with Bitcoin failing to pass it this year. Expectations were low that the story would change this year, and filbfilb’s surprise was palpable.

“Breakout! 10500 the level that needs to become support… then… then things get real interesting,” he confirmed.

Not everyone was convinced of the market’s strength. On Monday, trading behavior suggested that investors were not fully signed up to Bitcoin staying at its new levels. By the end of the day, however, the mood among traders was all but unanimous.

“Heck of a day! – long term market structure – resistance was broken,” fellow trader Josh Rager summarized on Twitter. 

“This daily close is amazing and could very well resemble April 2019’s $1k candle that ended the bear market and fueled a rally to $13k. Only this time, the rally should lead to new all-time-high for BTC.”

Analyst: BTC pullback could hit 20-30%

That sentiment was shared in non-technical circles this week, specifically by the likes of RT host Max Keiser, who placed bets on Bitcoin hitting $28,000 before a major correction occurred. That would already beat 2017’s all-time high of $20,000, but afterwards, six figures would hit, he wrote on Twitter.

Rager also admitted that a correction would form a necessary part of price action.

“The amount of volume that came into today was great confluence for Bitcoin breaking resistance,” he added. 

“Pullbacks are to be expected – so be prepared if Bitcoin wicks down 20 to 30% in the coming weeks. But right now, I continue to lean heavily bullish unless we close back under $10k.”

Anthony Bevan is a journalist focusing on disruptive finance and cryptocurrency, along with the changing face of the market as Bitcoin gains mainstream adoption. Journalists covering cryptocurrency for Modern Consensus May hold positions in some of the currencies they write about.