Bitcoin Analysis: Breakout of $9k, Exploring the Main Drivers

As published via [**CoinLive**](https://www.coinlive.io/analysis/xxx)

Bitcoin is breaking through a major level of resistance at $9k as the rally continues. This article looks to provide insights behind some of the key metrics and other fundamental aspects backing Bitcoin.

[![](https://www.coinlive.io/ckeditor_assets/pictures/779/content_1.png)](https://www.coinlive.io/ckeditor_assets/pictures/779/content_1.png)

Remember, when we see a pump in price, it doesn’t necessarily mean that one can pinpoint the reason fueling the higher valuation. A whole plethora of factors outside the public knowledge may influence such decision to buy the token, however, by analyzing the latest key fundamental advancements, we can assess how well justified the rise is.

**#1 Google Trends: ‘Bitcoin’ Picking Up**

**[![](https://www.coinlive.io/ckeditor_assets/pictures/780/content_4.png)](https://www.coinlive.io/ckeditor_assets/pictures/780/content_4.png)**

**#2 Social Media Hype Solid**

The social media activity via Twitter and Reddit on Bitcoin has been consistent since early April. We’ve drawn a line around 22.5k, which when broken, should provide further evidence that the hype is truly back.

We like to use the website Solume.io illustrates the change in sentiment, as it helps us track the social activity on Reddit and Twitter.

[![](https://www.coinlive.io/ckeditor_assets/pictures/778/content_3.png)](https://www.coinlive.io/ckeditor_assets/pictures/778/content_3.png)

**#3 Developer’s Update via Jimmy Song**

As seen in the Newsletter we love to follow [Proof of Work](https://proofofwork.substack.com/p/proof-of-work-18).

– [The Bitcoin Standard](https://www.amazon.com/dp/B07BPM3GZQ/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1) and my [review](https://medium.com/@jimmysong/why-bitcoin-works-fe32879a73f5) of it

– Tx Fee [Visualization](https://transactionfee.info/charts/feerate/percentiles)

**#4 Bitcoin Lightning Network Matures**

According to Bitcoinist: “Data showing current activity on Lightning’s Bitcoin mainnet implementation reveals a network capacity of $148 million, up from $80 million April 10. At one point, over 2000 active public nodes were available to process transactions, which can confirm almost instantly for a fee of less than one satoshi per byte.What’s more, the network has now reached 7000 active channels.”

[Read the full story](http://bitcoinist.com/2000-nodes-150k-capacity-lightning-network-sets-new-adoption-records/) via Bitcoinist.

**#5 BTC Over the Counter Activity Huge**

As CoinLive has reported via Twitter: “Our network of Insiders telling us between 5000-10.000 BTC are being sold every week OTC by Chinese BTC miners to Israeli buyers – Wall Street type – as they look to accumulate a big hand in BTC.”

We also noted the tweet back in early April via Jeremy Gardner @Disruptepreneur: “OTC market demand for bitcoin right now is unlike anything I’ve ever witnessed. Several asks for multi-billion dollar blocks…”

Read the [original source.](https://twitter.com/Disruptepreneur/status/980940740564942848) Also, read a story carried by [NY Times](https://www.nytimes.com/reuters/2018/04/02/business/02reuters-crypto-currencies-otc.html) on the same topic.

**# 6 Bitcoin Market Opens to 1.6 Billion Muslims**

An Islamic scholar recently declared Bitcoin “permissible” under Sharia law, which opens the market to 1.6 billion Muslims around the world.

‘Is Bitcoin Halal or Haram: A Sharia Analysis,’ a report written by Muhammad Abu Bakar, a certified Muslim legal expert, analyzes whether cryptocurrencies fall under halal or haram (prohibited) based on Islam’s strict definitions of money.

Read the full article at [iconow.net](https://iconow.net/bitcoin-market-opens-to-1-6-billion-muslims/)

**# 7 End of US Tax Season Clears the Path for Fresh Capital**

“Selling pressure in cryptocurrencies could ease after tax day”, those were the words from Tom Lee, the head of research at Fundstrat Global Advisors.

Lee was quoted via [Bloomberg](https://www.bloomberg.com/news/articles/2018-04-05/crypto-rout-driven-by-25-billion-capital-gain-hit-tom-lee-says?cmpId=flipboard) earlier in April:

“The April 15 income-tax filing deadline is contributing to crypto’s falling prices as investors who won big betting on the digital tokens sell some of their remaining holdings to pay $25 billion in capital-gains levies, Tom Lee, the head of research at Fundstrat Global Advisors, wrote in a note Thursday. Bitcoin dropped more than 40 percent over the past month, including a 2.4 percent decline on Thursday to $6,664 as of 9:39 a.m. in New York.

“This is a massive outflow from crypto to dollars,” Lee wrote. “Historical estimates are each $1 of USD outflow is $20-$25 impact on crypto market value.” Lee says that $25 billion prediction — derived from his estimate that U.S. households had $92 billion in taxable gains from cryptocurrencies in 2017 — would represent 20 percent of capital-gains tax receipts to the U.S. Treasury. He estimates total capital gains receipts will hit a record $168 billion for tax-year 2017.”

**#8 Technical Breakout Sees Further Shorts Liquidation**

The area of resistance at $9k represents a major hurdle, so when it broke, some shorts saw their stops triggered which creates an initial flash-type move on the combination of shorts buying back to close their positions and new longs coming in.

[![](https://www.coinlive.io/ckeditor_assets/pictures/781/content_Capture.PNG)](https://www.coinlive.io/ckeditor_assets/pictures/781/content_Capture.PNG)

To gain access to additional stories on Bitcoin, find below a timeline of the most relevant headlines in recent times. One can visit **[CoinLive’s 24/7 News Terminal](https://coinlive.io/terminal)** to gain access to all the news stories.

[![](https://www.coinlive.io/ckeditor_assets/pictures/777/content_2.png)](https://www.coinlive.io/ckeditor_assets/pictures/777/content_2.png)



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