The decade-old and original crypto had mounted a couple of unsuccessful attempts at piercing through the $6k major milestone earlier in the week, finding some incredibly stubborn resistance at $5,900. But a move upwards shortly after midnight on the 9th saw levels approach $6,070 before settling around $6,040. It looked very much like it was preparing to bed down for a lengthy spell at that figure but, just as it closed its eyes, BTC was tumbling out of the duvet and hitting the floor at $5,800.
Some market panic ensued with whispers of capitulation until the sharp fall arrested and levelled before another spectacular climb overnight and into Friday morning where it found itself impressively hovering over $6,200.
Many commentators will now be waiting to see what happens over the coming days and weeks, but the general opinion seems to be that BTC will now hold its head above $6,000 as it consolidates for what is widely anticipated to be another move upwards.
The return above $6k has been a long time coming after the stumble from a drawn-out period at around $6,400 throughout much of last year saw it drop below $4,000 in November and languish amid market apathy for several months.
Some confidence and trading volume appear to have been building since mid-March, despite the odd negative news story which often dictates the narrative of the cryptocurrency markets. The Binance hack earlier this week would normally have had a harmful effect on the price of BTC but, if anything, it has seen the reverse.
It is, perhaps, this effect which is leading a small group of crypto observers to wave a cautionary flag at those so keen to shout ‘bull market!’.
The steep rise, in their eyes, looks a little too good to be true. And there’s some evidence in the charts to support their sentiments. The angle of attack in this recent elevation looks almost parabolic – a pattern which sets off alarm bells for a number of traders.
There are now two trains of thought for what bitcoin does from here.
Firstly, and this appears the most popular theory, is the belief that this is the start of a long period of consolidation which will see bitcoin hold its ground above $6,000 before building for another climb.
Secondly, and in contrast to the popular thinking, the jagged sideways movement above $6k bears all the hallmarks of a classic ‘Bart’ pattern. This is when a sharp rise is followed by an oscillating sideways stretch before a sudden drop mirrors the rise. In essence, the chart will look like a line drawing of the top of Bart Simpson’s head – hence ‘Bart pattern’. Albeit, the dramatic dip between the two main climbs here may leave him with quite the jaunty parting.
As the breakout over $6,000 is still quite fresh, it’s too early to say with any great certainty which camp may be making the right call. They both state a good case.
Either way, after months of market apathy and little movement, it looks like bitcoin is starting to grab mainstream investor attention again.