fbpx
Bitcoin

Bitcoin (BTC) Flirts With Psychological $8,000 Mark

It’s been undeniably a good few months for backers of Bitcoin. The end of April saw the digital currency record its first three-month winning streak since 2017, closing 28.5% higher in April alone. Another milestone has been reached in early-May, as Bitcoin passed the $100 billion Market Capitalization mark for the first time in 2019.

The question for those considering if it’s a good time to buy cryptocurrency is whether this is sustainable. According to Robert Sluymer, a Fundstrat technical strategist who correctly called Bitcoin’s nosedive in November 2018, the answer is yes. It should be noted that other cryptos, including Ethereum and Litecoin, have inched higher this spring, albeit Bitcoin has taken most of the headline gains, increasing its dominance by total share of the crypto market.

Sluymer wrote in a May 2nd note, reported by Bloomberg:

Use pending pullbacks to continue accumulating Bitcoin in the second quarter in anticipation of a second-half rally through $6,000 resistance.” He added that Bitcoin is in “the early stage of a longer-term recovery developing.

Minimal selling from long-term holders-

Bitcoin investors would have been further buoyed by the report by research firm, Delphi Digital, which highlighted the minimal selling from long-term Bitcoin holders, which suggests that the price of Bitcoin has already bottomed out for this cycle to reach the greatest heights. For instance, Bitcoin currently is trading at a level above $8000 hitting in the center of the bullseye, foresighted for a long time now.

Of course, the problem we often get with cryptocurrencies is that much of the reporting can be contradictory. Bloomberg reported in late-April that the technical gauge, the GTI Vera Convergence Divergence indicator, which investors use to detect trend reversals, sent out its first ‘sell’ signal in months.

Ads

That reporting was further compounded by the fact that Tether, one of the most important stablecoins, and its sister exchange network, Bitfinex, have run into controversy after being accused by the New York Attorney General of covering up missing funds of $850 million.

Bitcoin shrugging off problems elsewhere-

Yet, so far in early-May has shrugged off both these issues. It has surged in the week since that ‘sell’ signal, and if anything has become a safe haven for cryptocurrency investors in the wake of the Tether scandal. In short, the positive signals are outweighing the negative ones on the balance of reporting.

Certainly, passing the $8,000 mark will be seen as quite a masterstroke for those who remained firm on Bitcoin over the past year. It’s easy to forget just how negative financial reporting was on its future through the back end of 2018. The last few months have helped build an optimism not seen in a long time.

As mentioned, other cryptocurrencies have been booming over the last few months too. Litecoin, in particular, surged along with Bitcoin, passing through its own resistance level of $75 in early May after a bumpy April. Of the major tokens, XRP (Ripple) is perhaps the main struggler, with some analysts predicting the bear market to resume soon; although not a deepened dip.

All in all, crypto investors will be optimistic about what they have seen in the mid of the second quarter of 2019.  Certainly, if we compare the last four months with all the negative sentiment, especially in the mainstream financial media, of 2018, we should be positively enthusiastic.

Tags

Leave a Reply

Your email address will not be published. Required fields are marked *

Event Information
Event Information
Back to top button
Close