Bitcoin has been doing quite well as of late. Over the past month, it has entered and stayed within bearish territory, and it’s currently trading for approximately $9,300.
Bitcoin May Be Heading Back Down Soon
Yet, not everyone is convinced that everything is going to stay pleasant and positive. Many are worried that the currency is about to strike an anvil, and the bears are about to take over for good.
Analysts are suggesting that bitcoin is above the “upper-band limit of the GTI Vera Band Indicator.” This has happened twice already over the past year, and a correction immediately followed each time. Thus, could bitcoin potentially fall back a few steps?
Back in July, analysts noted that the cryptocurrency was undergoing similar behavior. The Indicator was suggesting that the currency was about to hit a snag in its present ascension (at the time, the world’s number one cryptocurrency was trading for above $13,000 per unit). Almost immediately, it fell to about $10,000. From there, it entered a bearish run that saw it reaching the high $6,000 range in December.
Bloomberg’s Mike McGlone says that the currency could be on the verge of sinking back to $8,500. He states:
The bitcoin bid, fueled by declining equity prices amid coronavirus concerns, is indicative of crypto’s growing acceptance as a risk-off diversifier.
Others, however, aren’t convinced BTC is heading towards the dark depths of oblivion. One bitcoin and crypto analyst on Twitter by the name of Josh Rager recently wrote:
How long are you bears going to stay bearish? Stop with the $5,000 calls.
There is support throughout the cryptocurrency space that virtually all top 20 coins are experiencing solid bursts in their prices. Ethereum (ETH), for example, is the world’s second largest cryptocurrency by market cap and the primary competitor to bitcoin. At press time, it is trading for over $170 per token, the highest it’s been in a month.
Litecoin (LTC) has also shot up by more than ten percent over the last day alone. While reasons for this aren’t particularly clear, analysts are taking this as a good omen considering bitcoin and Litecoin are often coordinated. Whatever bitcoin does, Litecoin is sure to follow, so granted bitcoin does well, Litecoin will do the same.
LTC Reflects Off of BTC
If LTC continues this streak, we can take it as a sign that perhaps the world’s primary cryptocurrency, bitcoin, will continue to strive for glory.
Bitcoin has been on a roll since the beginning of the month thanks to geopolitical tensions between the United States and Iran. In addition, Chicago, Illinois-based CME Group has announced that it is introducing bitcoin options trading on futures contracts. These options became available at the midway point of the month and have already experienced great success and reception.