Just over an hour ago as of this article’s writing, Bitcoin closed the price candle for the month of May.
This was a very important technical event for the cryptocurrency, analysts have said. And fortunately for bulls, BTC closed above a crucial region of resistance that would have otherwise restricted the asset’s potential upside.
Bitcoin Closes Above $9,360, a Key Level
Prior to the monthly close, there were analysts pointing to the low-$9,000s as a crucial region to watch.
One “full-time scalper” shared the analysis below hours out from the May close, drawing attention to $9,360 in particular.
According to him, this level is important because BTC hasn’t closed above it in nearly 12 months, though has been rejected at the level on a number of occasions:
“We’ve not had a Monthly close above 9360 in nearly 12 months. Rejections from this level have led to tests of $6k and eventually $3k.”
Chart from cryptocurrency trader “Cold Blooded Shiller,” who goes by @ColdBloodShill on Twitter.
In Q3 and Q4 of last year, Bitcoin closed under that level on a number of occasions, which was followed by a drop to the $6,000s. And earlier this year, it failed to breach that level again, contributing to March’s capitulation to $3,700.
$9,360 is also in proximity to the downtrend that formed after the $20,000 Bitcoin price all-time high, as reported by this outlet previously.
The fact that BTC closed May at $9,450, close but still more than a percent above $9,360, purportedly is “incredibly significant for bulls.”
Adding to the Bull Case
The monthly close above the low-$9,000s only adds to the rapidly forming bull case for Bitcoin, analysts have noted.
Adding to the bullish confluence is fundamental and on-chain events.
Blockchain analytics firm Glassnode recently found that 60% of all BTC in circulation “hasn’t moved in over a year, showing increased investor HODLing behavior.”
The last time this much of BTC’s supply was stuck in place was “right before the BTC bull market of 2017,” prior to the 2,000% parabolic rally that took Bitcoin from $1,000 to $20,000 within a year.
Chart of Bitcoin investor habits from crypto analytics firm Glassnode (@Glassnode on Twitter). The image was shared on May 29th, 2020.
Alongside this, the situation between the U.S. and China has started to deteriorate over the proposal and implementation of a new security law for the region of Hong Kong.
The premise of the law is to “combat growing terrorism,” but officials in the U.S. and others around the world see it as a threat against Hong Kong’s democracy and autonomy.
Hong Kong was handed from the British to the Chinese in 1997, with the stipulation that Beijing would leave the region’s autonomy in place until 2047. Hence the ongoing controversy.
The yuan has sunk due to the news, potentially acting as a boost for the fledgling safe-haven asset that is Bitcoin.
Featured Image from Unsplash