BTC/USD Is Only A Few Hundred Dollars From $10k

Bitcoin (BITCOMP) does not rest on the weekend. The cryptocurrency, which was confined to a narrowing channel, made a clear breakthrough out of those level and hit new highs. A break of the previous top of $8367 was broken during the weekend and the new high is $9596, just 404 dollar away from the magic 10,000 USD level.

At the time of writing, BTC/USD is settling in a clear range, at least temporarily. The $9596 top is the upper end and probably the last limit before $10K. Support is found at $9195, which was a stepping stone on the way up and also a level of support after the break higher.

Further below, we can eye $8902 as a line of support before eh move above $9195. And lower, we are already back to the previous peak that now turns into support at $8367.

Rational rise? Mainstreaming makes its move

We previously discussed the rational range trading that the price experienced. The developments over the last weekend of November seem somewhat less rational despite the lines of support and resistance that we can point to on the chart.

What is behind the rise? There may be some gush of euphoria. There have been many analysts calling out a bubble. Perhaps there is no such thing as bad publicity. Calling it a bubble is still calling it, attracting further funds.

The option to short bitcoin, as introduced by the CME, may have added to longs: a mechanism to short the coin just makes it more mainstream.