In the past few days, Bitcoin has experienced a sharp increase, regaining ground above $110,000 and surprising even its most ardent detractors. Famous gold advocate Peter Schiff and bullish cryptocurrency commentators engaged in a heated Twitter exchange after the spike, and Schiff's response was unexpectedly direct.
"It will soon be above the mcap of Gold and there's nothing you can do about it," declared community members, with confidence on June 9. Schiff responded, saying that he does not have to do anything about it. With the rising market value of gold, it is highly unlikely to ever occur. Some even believe that we will not see Bitcoin below $100,000. “Never say never” Schiff curtly responded, especially when it comes to Bitcoin prices.
Schiff's exchange highlights the strength and volatility of the recent surge in Bitcoin. Bitcoin recovered from a peak in May that was just over $112,000, and it found support at about $105,000, which is the 26-day exponential moving average. After that, buyers intervened forcefully, pushing the price back above that mark and over the subsequent barrier at the 50-day EMA close to $102,000.
The quick breakout teased new all-time highs for Bitcoin by pushing it over the crucial $110,000 mark. Bitcoin's recovery from the 26 EMA on the daily chart has been accompanied by an increase in RSI momentum, which has returned to bullish territory above 60. Positive days have also seen a slight increase in volume, indicating real demand as opposed to short-covering.
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The next resistance zone above $110,000 is between $112,000 and $113,000, which in May saw the highest concentration of liquid order clusters. The technical background is unquestionably bullish despite Schiff's unwavering skepticism: a successful hold above the 26-EMA followed by clear breaches of the 50 and 100-EMAs (now trading at about $97,500) would indicate that the path of least resistance points higher.
Bitcoin may move from unlikely to inevitable as it aims for new record highs if it can maintain this momentum. It will be interesting to see if Schiff gives in or backs down in the end. For the time being, however, Bitcoin's unexpected surge has not turned into a long-term rally, and it is too early to celebrate a new ATH.
