Things just keep getting better and better for bitcoin.
Bitcoin Is at the Top Again
At press time, the father of cryptocurrency has swung north to hit the $5,600 mark. The currency has jumped by about $2,000 in just the past few weeks alone, and many believe the ultra-bearish conditions that have affected the currency since November of last year have finally come to an end.
Bitcoin struck gold in December of 2017, hitting the $20,000 mark and giving many enthusiasts and traders the idea that the currency was unstoppable. Unfortunately, we all learned that this was far from the truth.
The following month, bitcoin would begin a sudden nosedive that would see it drop to the $6,000 range by the summer. It was here where the currency decided to remain for most of 2018’s latter half, but by the time Thanksgiving rolled along, a bitcoin cash hard fork occurred that pitted many industry experts against each other and led to chaos in the crypto space.
From there, bitcoin suddenly began dropping even further. It ultimately hit the mid-$3,000 range, meaning that the currency had lost roughly 80 percent of its gains in less than a year. It was an ugly and unfair sight, and one that many traders believed would never cease.
But ceased it has, and the currency’s momentum could see it hitting the $6,000 milestone yet again granted it can keep up this level of speed and stamina.
Simon Peters – an analyst with the online trading platform e-Toro – is positive about what bitcoin will experience in the coming weeks, claiming:
The stars are aligning for a bitcoin bull run. The short-term moving average for the price of bitcoin has finally moved above the longer-term average, which is often referred to as a golden cross, so investors are starting to believe that we might just be approaching a new phase for the price of bitcoin.
Other analysts, however, are suffering from stronger cases of gloom-and-doom and claim that the currency will experience more “short-term losses” before any serious gains occur. One of those analysts is George McDonaugh, CEO of the digital asset investment firm KRI.
Could Bitcoin Fall Again Before Rising Further?
In an interview, he states:
As bitcoin edges back up, that previous $6,000 support level has now turned into resistance and is now firmly in the spotlight. A move back above here will bring the $10,000 level back in focus. I think breaking through it on its first attempt any time this month is unlikely. What is most likely to happen is that it will test $6,000, fail and head back down towards $4,000. I would expect the price to break through $6,000 on any second or third attempt and from there the aim would be to get back to $10,000.