LEADING market analysts are suggesting the value of bitcoin will soon hit $6,000.
The price of the original cryptocurrency has rocketed in the last four weeks, leaping from below $3,900 to above $5,600 earlier this week.
And that momentum, say some observers in a Coin Rivet article for the Daily Express, is a signal that the recently restored confidence is building in BTC.
“Technical analysis, including long-term indicators such as the Moving Average Convergence Divergence and the Exponential Moving Average are showing signs that bitcoin is ready to hit the critical $6,000 level,” explains Nigel Green of the deVere Group.
“Further bullish impetus for bitcoin may also be provided from a so-called ‘golden cross’ – which is when the 50-day moving average pushes beyond the 200-day moving average.
“Anecdotally too, it seems the broader sentiment is definitely turning decidedly more bullish amongst crypto traders. Many of even the most strident bears appear to be flipping.
“I believe we will see many retail and institutional investors who have been sitting on the sidelines now unleashing their investment in the crypto market.”
It’s a sentiment shared by George McDonaugh, CEO of London-based cryptocurrency and blockchain investment company KR1.
“It is clear that the $6,000 level in bitcoin is a key price point to overcome in order for this recent strength to be maintained, as this is the price that acted as significant support for a number of weeks in the latter part of 2018,” he said.
“Breaking below it was a watershed moment that then saw the price fall off a cliff down to $3,100 in December as the ‘crypto winter’ was at its height.
“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.”
If bitcoin can successfully penetrate the psychological barrier of $6,000 it is expected by many that it would enter into an accumulation period before mounting a challenge on higher values.
It is anticipated though, that bitcoin will meet a stiff line of resistance at $6,000 – making it a significant target in determining its future price. It’s a signal echoed by deVere CEO Nigel Green.
“I recently forecast that we could reasonably see the bitcoin price hitting $7,000 in the next few months,” he said.
“The expected $6,000 test is, of course, a major step in reaching this level.
“It’s still too early to accurately say that bitcoin is now in bull market territory – but the evidence for this trend is increasing day by day.”
Although sharing the long-term view, Mr McDonaugh meanwhile believes the markets are revealing signs of a potential collapse before they mount a serious attempt at climbing above $6,000.
“I think breaking through it on its first attempt anytime this month is unlikely,” he predicts.
“What is most likely to happen is that it will test $6,000, fail and head back down back towards $4,000, and 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.
“The fact that we are even seriously discussing these price levels as a possibility at this time shows how sentiment has significantly shifted to become more positive.”
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