After a shaky September where Bitcoin (BTC) threatened to drop below the key support level of $10,000 multiple times, the Bitcoin market has roared back to life, with the price of Bitcoin rallying from $10,500 to $11,500 in the last few days. Further, the rest of the crypto market is surging as well, with Ethereum (ETH) rising from $340 to $380, and the total crypto market cap rising from $330 billion to $365 billion.
Additionally, the Decentralized Finance (DeFi) sector is as strong as ever, with the total value locked in DeFi rising towards $11 billion.
Overall, it seems a crypto bull market is upon us, and the key question is will Bitcoin be able to break through critical long term resistance levels at $12,000 and $14,000?
It seems fundamentals are on the side of the current crypto rallying continuing. First off, the May block halving has drastically reduced Bitcoin selling pressure from miners, and based on historical data, the block halving rally should be beginning around now.
Also, the global economy continues to face headwinds from the Coronavirus Pandemic, with the Coronavirus actually surging to new records at this time. Bitcoin has proven to be the most lucrative asset during the Coronavirus era, as investors buy up Bitcoin as a safe haven asset, and since the Coronavirus appears to be getting worse, this trend should continue.
Indeed, even publicly listed corporations, like Square and Microstrategy, are beginning to put significant amounts of money into Bitcoin for the first time, since Bitcoin has consistently been very profitable while the rest of the economy has floundered.
All things considered, it seems the current crypto rally has strong fundamentals and is likely to continue. Crypto traders should closely watch the long term resistance levels of $12,000 and $14,000, since if Bitcoin can break through these levels, then Bitcoin could quickly rise to the all-time high of $20,000.