Things are looking good for bitcoin from a technical standpoint.
Technical Charts Suggest Positivity for Bitcoin
Per recent technical charts, the world’s number one cryptocurrency by market cap has surged past a crucial position – the same position it moved beyond last January to incur a serious price spike that saw the currency surge past the $10,000 mark in mid-February.
Could this mean that the gloom and doom that’s been plaguing bitcoin over the past few weeks is about to come to an end? Could the world’s primary digital currency finally be digging itself out of the dirt and heading for the stars?
Bitcoin has been stuck in a downward cycle since early March. The currency fell from the mid-$10,000 range to about $8,700 by the time the month began, but nothing could have prepared asset holders for what was about to happen. The currency would ultimately fall into the high $3,000 range, thereby losing about 70 percent of its overall value in a very short period.
It has since recovered somewhat and settled about $3,000 higher (it’s presently trading for about $6,800), but there’s plenty of room for improvement. $6,800 is a solid price, but it’s no $10,000…
So, perhaps this new maneuver on bitcoin’s part could move it back towards the five-figure range in due time. Richard Rosenblum – co-head of trading at crypto market marker GSR – explained in a statement:
The potential for downward moves remains in these next two weeks, depending on what new health and economic data shows, but the long-term case for crypto has been made stronger by the impacts of this pandemic. As the dust settles, people will begin to look for a store of value.
Live Bitcoin News has reported in its last two articles about bitcoin that the asset is being viewed more as a “safe haven” asset amongst investors, who are frustrated by the current economic conditions brought on by the pandemic and who believe that the currency is the only sane trading tool to hang onto during these troubled times.
Sadly, not everyone agrees. Nicholas Cawley – senior market analyst at Daily FX – stated:
Cryptocurrencies, especially bitcoin, were supposed to offer a safe-haven against traditional assets and currencies, but they have failed miserably.
It’s Where It Should Be…
Mike McGlone – analyst at Bloomberg Intelligence – claims that the currency is doing exactly what it should be doing. For an asset that’s just over ten years old, people shouldn’t expect anything major from the currency just yet, and that where it is right now suits its present status. He says:
This year marks a key test for bitcoin’s transition toward a quasi-currency like gold, and we expect it to pass. Unlike the stock market reset but similar with gold’s, bitcoin had its shakeout, stabilizing the foundation amid unprecedented global monetary stimulus and increasing adoption.