Bitcoin (BTC) is currently trading at just above $8,700 and has managed to form a strong level of support following a 5% drop in price since last week.
Bitcoin has been consolidating since last month after price spiked from $7,500 to over $10,000 before retracing to the $9,000 range.
Following a number of lower highs, Bitcoin now seems to be in a confirmed uptrend, with price holding above all its EMAs for nearly a week before a minor dip last Friday.
Will BTC recover back to $10,000 and above soon?
Let’s take a look at Bitcoin’s chart.
As you can see from the chart above, BTC is now back trading above its 200-day and 50-day EMAs – something that hasn’t happened since September. In addition, all the EMAs are now moving in an upwards direction, which means we should expect BTC to hold at least above $8,500 where the 200-day EMA is currently sitting.
Last week, I said I expected BTC to find a bottom near its 200-day EMA close to $8,800 and that Bitcoin would bounce to around $10,000 soon. The first prediction has come to fruition – now let’s hope the second prediction plays out as well.
After last month’s massive pump, it’s clear new investors and traders are taking over price action.
History shows us that BTC is prone to huge drops between 30% and 40% during bull seasons. Therefore, I don’t advise that you fight the trend, but surf it for as long as possible.
Last week, I underlined that within the next three to five weeks, we could see a major reversal after a period of serious accumulation by ‘hodlers’.
However, for the time being, not only has Bitcoin reversed its downwards trend, I argue BTC will reach $12,000 by the end of 2019 if we continue to see strong gains.
Volume, which had dropped from a peak of $27 billion earlier in the year to just over $15 billion last month, is now back to the $20 billion range. At the time of writing, it is about $21 billion.
Bitcoin’s market dominance has also slightly decreased about 1% since early October, from 67% to 66%.
As veteran traders and investors usually say, smart money “buys when there’s blood on the streets”. Currently, I’m waiting for another minor drop in price to make new entries. These drops won’t last forever, and if you think traditional markets are currently on a massive bull run, I wouldn’t be so sure the trend won’t reverse.
How can the markets not push higher throughout the year after the ECB’s recent rate cuts, the continuous share buybacks from huge corporations, or the inverted bond yield shoving investors away towards riskier assets?
In addition, repo market activity – as in loans from central banks to commercial and investment banks – has spiked to new monthly records. That adds up to another signal of weakness among most banks.
Safe trades!
Current live Bitcoin pricing information and interactive charts are available on our site 24 hours a day. The ticker bar at the bottom of every page on our site has the latest Bitcoin price. Pricing is also available in a range of different currency equivalents:
US Dollar – BTCtoUSD
British Pound Sterling – BTCtoGBP
Japanese Yen – BTCtoJPY
Euro – BTCtoEUR
Australian Dollar – BTCtoAUD
Russian Rouble – BTCtoRUB
In August 2008, the domain name bitcoin.org was registered. On 31st October 2008, a paper was published called “Bitcoin: A Peer-to-Peer Electronic Cash System”. This was authored by Satoshi Nakamoto, the inventor of Bitcoin. To date, no one knows who this person, or people, are.
The paper outlined a method of using a P2P network for electronic transactions without “relying on trust”. On 3rd January 2009, the Bitcoin network came into existence. Nakamoto mined block number “0” (or the “genesis block”), which had a reward of 50 Bitcoins.
If you want to find out more information about Bitcoin or cryptocurrencies in general, then use the search box at the top of this page. Here’s an article to get you started.
As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice.
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