Is another Bitcoin FOMO rally imminent?

Bitcoin eviscerated the $10,000 psychological barrier and paused just an arms length away from the $11,000 price point during early Asian trading hours on Saturday.

At the time of writing, the number one digital asset is exchanging hands at $10,790, having gained over 10% in 24 hours, and over 220% since December 15th 2018. As has been demonstrated time and again, Altcoins are following the king, but Bitcoin remains the undefeated growth champion of the space by a mile.

As the price settles above $10,000 there could even be room for another upward move, with prominent Bitcoin bull Tom Lee saying that a sustainable move would trigger a FOMO (Fear Of Missing Out) rally the like of which we’ve never seen — pushing Bitcoin towards the $40,000 level within a couple of months.

George McDonaugh from blockchain and cryptocurrency investment firm KR1 also gave importance to the $10,000 barrier.

“When we reach $10,000 the world will be hit with a slue of headlines and those that thought it was a passing fad will raise an eyebrow and log it mentally that its something they should look into. This is how the cycle continues and I expect prices to surge after this mental marker is reached,” he recently stated.

Bitcoin’s technical picture

Meanwhile, Bitcoin (BTC) has entered into a consolidation phase as the bulls need to take a breather before gunning for the $11,000 barrier. Once this is cleared and the move above $10,000 sustained, then the sky is the limit.

On the flipside, the Relative Strength Index (RSI) on both the daily and weekly time frames are slammed in overbought territory, indicating that a cool-down period could be in the works. It remains to be seen whether these indicators are relevant given current market conditions and Facebook’s recent launch of Libra — which many analysts are calling a “gateway drug” into the cryptocurrency world. A sustainable move below $10,000 will likely result in a retest between the $9,360 and $8,790 region.

Having said that, the resurgence of the bull market is now confirmed. It’s likely that any retracement or consolidation period will be seen as an opportunity for accumulation more than anything else.

This is not financial advice.