BTC/USD skyrocketed to 10743 levels on Wednesday as it continues its uptrend. It is currently trading at 10440 levels at the time of writing (Bitstamp).

Ichimoku analysis of daily chart:

Tenkan Sen: 9256.80

Kijun Sen: 8149.58

On the upside, the pair now faces resistance at 10854 (227.2% retracement of 7888 and 5555.55) and a break above would see it testing 10926 (161.8% extension of 2972.01 and 7888)/11000. Further strength would target 11186/11631 (161.8% extension of 1830 and 7888).

On the flip side, support is seen at 10008 (2h 10-SMA) and any violation would see it testing 9993 (1h 20-SMA)/ 9904 (4h 10-SMA)/9868 (2h 20-SMA)/9792 (1h 50-SMA). Further weakness would drag it to 9588 (5-DMA)/9336 (2h 20-SMA)/9158 (7-DMA)/8866 (10-DMA).

Momentum studies: Bias remains bullish on the daily chart with no signs of reversal, although bears have slightly flexed their muscles as the pair hit fresh all-time high at 10743 levels today.

High caution is advised as stochs and RSI are at overbought levels.

Cryptocurrency Industry Weighs In

As the cryptocurrency community is rejoicing bitcoin’s exponential growth, experts are weighing in on the factors that are driving it. Importantly, they are cautioning investors as the current situation is highly unstable and expect a flash crash in near future.

Simon Yu, CEO of StormX, the blockchain-powered adtech and micro-task innovators, said: “The bitcoin price is at an all-time high is due to institutional money finally starting to flow into the cryptocurrency market. Recently, announcements from the South Korean Bank Hyosung in support of bitcoin, from CME Group announcing they'll be launching a bitcoin futures market, and from Square Cash announcing bitcoin will be supported caused bullish behavior in the market, pointing to a major shift. The general public is starting to realize cryptocurrency is beginning to be adopted to mainstream markets and will continue an upward trend as they see the potential for more companies to adopt cryptocurrency.”

Christopher Grey, COO of Caplinked, said: “Investors unfamiliar with crypto are piling new money into bitcoin right now, making the situation highly unstable as investors expect the price of bitcoin to keep going up. Any declines could be exaggerated dramatically because they are not stable owners of crypto. Alternatively, the price could continue to rise parabolically, drawing in enormous sums in the tens of billions of dollars from other risky liquid investments like growth stocks and junk bonds. This could cause the prices of those investments to weaken as a result of this liquidity moving out of them and into crypto. Either way, this situation is not stable and cannot continue for an extended period of time. Something needs to give in one of the risk markets, as liquidity in these markets is not infinite and nothing here is being created, just moved from one risk market to another by speculators. This didn’t matter when total crypto value was small, but at these levels of hundreds of billions in value, it becomes a substantial user of global risk capital.”

Sol Lederer, Blockchain Director at LOOMIA, said: “With bitcoin nearing $10,000, long-time bitcoiners finally feel vindicated that their currency that has been ridiculed for years, is at last being taken seriously. Naysayers may still say bitcoin is a bubble, but very few would argue it’s worthless or a scam, yet only a year ago this was a common narrative. Bitcoin’s future is still uncertain; it faces the same serious technical challenges it has for years, and faces stiff competition from newer, more sophisticated blockchains. But even if it were to crash, it’s apparent that bitcoin is here to stay. Whether it trades at $10,000, $5,000, or $500, it’s not going away.”

Abhishek Pitti, CEO of Nucleus Vision, said: “Bitcoin seems to be breaking past new price barriers each week, hitting new highs more frequently, with each new high being breached exponentially faster than before. The news of each new all-time-high creates more euphoria in the minds of both crypto investors, resulting in people flocking towards purchasing bitcoin in hordes. To add to that, the recent news about CME introducing bitcoin futures to pave the way for more institutional capital to enter the world of cryptocurrencies is pushing up bitcoin prices unprecedented highs. That being said, the crypto market is extremely volatile, and this kind of growth has seldom been sustainable, and a flash-crash is imminent in the near future. Long-term, though, I am extremely bullish on bitcoin and the future of cryptocurrencies.”

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