BTC Still on Shaky Ground Despite Recent Bullish Price Action
The prospects seem brighter for a majority of coins, including Bitcoin (BTC). At the moment BTC is trading above the $6k level.
The digital currency’s price has been climbing from yesterday. So significant was the leap that by the time of going to press it had hit the $6,634 mark. This is according to data from CoinMarketCap.
Analysts have been chiming in with their reasons for being bullish about the digital currency. Hunter Horsely, The CEO of Bitwise Asset Management, shared some important reasons for being upbeat about the coin.
He asserted that according to data from Coinbase, that 72% of its users were buying BTC. Additionally, BTC had started to outperform the traditional stock markets increasingly. Its performance indicates that it’s a haven amid the current coronavirus crisis.
By surpassing the $6,000 mark, BTC has more than justified recent price projections by top analysts including “The Crypto Dog”. Its current value is a 23.54% growth from yesterday’s figures.
Not out Of The Bear Woods
BTC could still be bearish, however, according to Josh Rager- a renowned crypto trader and analyst. To him, the price growth does not confirm the exit from the bear woods.
Through a Twitter post, he contended that for BTC to maintain its momentum, it had to overcome the $6,400 level, regarded as the control point. Failure to do so would result in the erosion of the leading crypto’s recent gains.
Despite expressing confidence in the coin’s long term prospects, Michaël van de Poppe, a prominent crypto trader believes it will register some further downside before gaining traction and summoning a steady climb.
“I’d love to have the bottom on BTC here, but I doubt we’ve seen it. I do believe we’re close. And these prices give you opportunities to long the most bullish asset of the next 5 years. Be wise and use that opportunity.”
BTC has done well to attain the short term level of $6,500. Nevertheless, it has to overcome a price correction at the $6,300 level to keep the growth.
The main resistance looking at the daily trading chart is at $7,000. Currently, BTC is approaching this point.
A Market-Full Of Bulls?
The MACD indicator shows that the blue is almost crossing the red zone. This indication confirms the presence of bulls in the market.
Dan Tapiero, the founder of Gold Bullion International, avers that BTC could still register further gains. Mr Tapiero is famous for a viral tweet that predicted that the advent of negative interest rates in the U.S would make BTC ‘mega bullish’.
Tapiero’s thoughts resonate with many other analysts. They affirm that owing to its deflationary nature, the widespread monetary easing in both the US and UK will make BTC bullish in the longer term