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Bitcoin Moves Ahead, with $12,000 in its Sights

Bitcoin had quite a week last week, gaining 14.08% Monday through Friday’s end of day $11,052.62. The weekly gain may not have been spectacular relatively to historical weekly gains, but a move back through to $11,000 was certainly key, while some of the other majors failed to move back through to key levels.

Friday saw Bitcoin and the cryptomarket struggle for direction, in spite of the strong weekly gain for Bitcoin, with Bitcoin gaining just 1.28%, with a mid-day sell-off seeing Bitcoin fall to an intraday low $10,774.01, testing its first major support level of $10,829 before moving back through to $11,000 levels by the close.

Bitcoin’s dominance has been on the rise this year and now sits at 41.4%, the highest level since December of last year, which is reflected in Bitcoin’s rise in market cap, which now sits at $192.28bn, still well below its December peak $323.8bn, but well above this year’s $103.02bn low.

The adoption of SegWit by two of the largest crypto exchanges has provided much needed support to Bitcoin in recent weeks and, while central bankers continue to suggest that the cryptocurrencies have lost their window of opportunity to take over fiat money as the preferred choice for businesses and consumers, there are still believers in the market.

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A lot of doubt continues to linger on whether Bitcoin can truly take over however, with mass adoption expected to impact on both transaction speeds and fees. SegWit’s adoption is a step in the right direction.

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BTC/USD 03/03/18 Hourly Chart
BTC/USD 03/03/18 Hourly Chart

At the time of writing, Bitcoin was up 2.74% to $11,331.75, with the bullish trend that started at the beginning of the month continuing into the weekend.

Friday’s pullback through Bitcoin’s 23.6% FIB Retracement level of $10,950.43 found little support, with buyers coming in at 38.2% FIB Retracement Level of 10,811.49.

Support suggests that Bitcoin should continue on its upward trajectory through the weekend, with the only question being whether Bitcoin can make a move through to $12,000 levels.

With Bitcoin having moved through its first resistance level of $11,230 this morning, the next milestone will be the 2nd major resistance level of $11,400, beyond which we will expect a bounce through to the $11,800.

A 2nd half of the weekend sell-off will test support levels, with investors looking to lock in profits, but with the improved sentiment, we will expect plenty of support at sub-$11,000 levels.

While any shift in sentiment will likely see Bitcoin pullback through its 23.6% FIB Retracement Level of $11,105.5, sub-$11,000 may well be avoided this weekend.

Bitcoin is leading the way and has managed to find its way back, with $12,000 levels now needed to draw in investors who pulled out in the slide to sub-$6,000 levels earlier in the month.

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This article was originally posted on FX Empire

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