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Analysis

Bitcoin: Can It Go Past $15k After Hitting $11,600?

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Due to rising market sentiment, the price of Bitcoin (BTC) was over $11,600 for the first time in 12 months. With BTC / USD showing strong development momentum, investors believe that there will be resistance up to $15,000.

In a sudden price move over the weekend, Bitcoin was at $11,763 on BitMEX. It also “filled” the $11,630 CME futures gap, which is typically not the case on weekends.

Meanwhile, Kyle Arrows, co-founder of Three Arrows Capital, said the weekend’s price promotion hadn’t even started. He pointed out that there is less resistance between $12,000 and $15,000.

Bitcoin’s weekly chart shows that historically there is a lack of price movements between $12,000 and $15,000. The last time BTC exceeded $11,600 was in mid-2019 when it rose to a multi-year high of $14,000 before being declined. But it’s also worth noting that the price of Bitcoin rose to an all-time high of 2017 within two weeks of hitting $11,600.

The daily chart of Bitcoin with a major resistance level.
The daily chart of Bitcoin with a major resistance level. Source: TradingView.com

According to Michael van de Poppe, Bitcoin’s market structure will remain attractive if Bitcoin holds $11,400. Stabilization above $11,400 indicates that it is a support level.

What is Behind the Bitcoin Rally?

At the same time, data from Skew show that this increase in Bitcoin futures contracts worth less than $20 million was liquidated. However, if the BTC price development is determined by the futures market, this usually leads to an increase in the liquidation level.

The lack of clearing on the futures market suggests that the spot and options markets are likely to stimulate a recovery. If the bitcoin futures market is not that hot, it will result in a more stable and fundamentally strong bull market cycle. Some well-known analysts believe that the bull market has now started.

In the higher timeframe, an anonymous trader named “Rookie” indicated that the monthly candles from Bitcoin and Ethereum signaled an upward trend. Furthermore, the integration of a favorable macro market structure and a neutral futures market can maintain the dynamic of BTC.

In the short term, the biggest obstacle for Bitcoin is whether the main support level of $11,400 can be defended. As BTC begins to break through and outperforms alternative cryptocurrencies, traders generally remain positive.

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