The San Francisco-based cryptocurrency exchange Kraken just released its monthly report on the state of the crypto market.
The report, which is initially sent out exclusively to VIP clients, says Bitcoin (BTC)’s hash rate and the spread of the coronavirus are two key factors to watch as the halving approaches in a matter of days.
If the hash rate rises and the Covid-19 infection rate slows, Kraken analysts anticipate that Bitcoin’s price will continue to climb.
“Should both trends persist, Bitcoin could ascend to a new local high (beyond $10,500) and break what has been a multi-year macro downtrend.
Bitcoin has been on a 7-week winning streak after collapsing roughly 50% to $3,900 in mid-March and has market participants anticipating a test of psychologically significant $10,000 resistance.”
Kraken says it’s following a symmetrical triangle pattern that Bitcoin has traded in since late 2018.
A breakout of the triangle would indicate a new long-term bull trend is underway, but if the king of crypto breaks to the downside, a major dip could be in store.
“A test of the pattern’s downtrending line of resistance is expected to either result in a bullish breakout to the upside that signals the start of a new bullish macro trend or a rejection back down towards the pennant’s support at roughly $6,000.”
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