Well, here’s some good news for all the bitcoin hodlers. It looks like the world’s number one cryptocurrency by market cap is back on track and is trading at $8,500.
Bitcoin Is Coming Back
This is a $200 price increase over the past 24 hours. After several spells of the old gloom and doom meandering through the space (what with Lunar New Year in China and what have you), it seems like all the soothsayers are licking their wounds a bit and hiding out in a cave somewhere before they say anything else that tarnishes their reputations further.
Over the past week, we’ve gotten tons of media reports that bitcoin was heading down a deep, dark path; that we were likely to witness the world’s number one digital currency go into a frenzy and hit a low point like we’ve never seen.
Things began when a global indicator was suggesting that the currency was about to hit a snag. Since it had failed to move beyond the present $9,000 resistance level, bitcoin was on the verge of losing much of its gains over the past few years.
It was even being suggested that the infamous death cross was in bitcoin’s sights, and that the currency was on the verge of dropping to as low as $2,300 per unit. This almost instantly spelled doom for many players in the crypto arena. The death cross had allegedly occurred before when bitcoin lost all its gains and then some in 2018 after hitting its all-time high of nearly $20,000 in December of the previous year.
When none of this panned out, analysts claimed that the Lunar New Year was likely to do some sort of damage to the currency’s standing momentum. It was slated that many people would sell their bitcoin stashes in China to potentially purchase gifts for their friends and loved ones for the celebration.
It was also slated that many of the New Year’s parties that were expected to occur would be cancelled out of fear of the coronavirus that’s spreading through the nation’s borders.
Maybe We Should Wait a Bit
For the most part, bitcoin sustained its present strength and remained at around $8,300 throughout most of the weekend. Now that the New Year has been rung in, the currency has added to its present value, and it seems to be defying all the naysayers that have been charging at it all week.
Still, however, the idea that bitcoin is now 100 percent okay could be a little premature given that it’s only been a few days. One thing we’ve certainly seen in the past is that bitcoin can appear strong at first while in fact, trouble is brewing underneath the surface. Perhaps it’s best to wait just a little while longer to make sure all is okay.