Bitcoin Picks-Up Bullish Momentum, Anticipates Second Leg Up

Luck has found Bitcoin (BTC) as it finally breaks above the $10,580 range top and is now marching towards the $11,000 psychological line.

According to bitcoinup.io, the surge was likely sponsored by an influx of about $12 billion into the cryptocurrency market during the earlier hours of today. This investment influx has lifted the entire crypto market out of depression and has helped BTC clear several key resistance levels.

While this appears to be a very positive development, many traders are skeptical that this could be yet another ploy by whales to cashout on small traders, adding that BTC could reverse sharply once it enters overbought conditions.

Key BTC Levels to Watch

Following the recent rally, Bitcoin is now trading within the $10,800-500 pivot zone and back above the mini-trendline. This puts it in an excellent position for bulls to attempt a second leg up towards $11k. A break above the key psychological level could send the cryptocurrency above the $11,200 level and restore its original bullishness.

However, bulls will have to be cautious and not get blindsided as the $9,600 CME gap remains open. If this bull run turns out to be another whale “heist,” we could see a sharp decline to the previous low areas.

As mentioned earlier, traders will be looking to see how Bitcoin reacts when it enters overbought conditions above 115.60 on the MACD indicator.

Total market capital: $349billion

Bitcoin market capital: $198 billion

Bitcoin dominance: 56.7%

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