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Is Bitcoin (BTC) Breaking Out?

Is Bitcoin (BTC) Breaking Out?

Bitcoin (BTC) is up above $9,500 and is now looking to rally towards $10,000. Ethereum (ETH) is also in the green. Other than that, most top ten cryptocurrencies except Binance Coin (BNB) are in the red but they are eyeing recovery as well. Looking at the chart for XBT/USD, we can see that Bitcoin (BTC) still has room to rally before the ongoing rally tops out. This might result in the price touching $10,000 or rising slightly above it as shorts are liquidated before it falls down to complete Phase D and Phase E of the distribution cycle. Bullish euphoria is still around extreme greed levels. The Fear and Greed Index is down only one point from yesterday and will be up tomorrow now that BTC/USD is ready to make a major move. This tells us that investors are not ready to give up on this rally just yet.

The sentiment on Crypto Twitter and other social media platforms is very bullish as well. For some reason, a lot of people are still buying the Bitcoin (BTC) as a safe asset theory. We have seen it fail many a time during tough times but people still try to find a positive association between Bitcoin (BTC) and Gold when there is none. The former is a highly speculative asset while the latter has been a safe haven asset since time immemorial. Taking a look at Crypto Daily Indices, we can see that all three indices have registered growth over the past day. Small cap took the lead followed by mid cap and large cap respectively. A quick glance at the Economic Calendar shows us that there are two important events that might influence EUR/USD tomorrow. One is the US Existing Home Sales (May) and the other is German Manufacturing PMI (June). Both of these will influence the Euro and will thus have a strong impact on the price of Bitcoin (BTC). 

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