As Bitcoin once again eyes the 10k level, there seems to be a renewed sense of bullish optimism in the marketplace. A clean and sustained break above 10k could set the stage for another run at the previous all-time highs around 20k. Analysts continue to debate the reason for Bitcoin’s significant pullback, with some feeling that the retracement was simply normal and due to increasing regulation.
A recent article from ccn.com discussed the matter with Mati Greenspan, a senior analyst at eToro and a well-known bitcoin expert. he was quoted in the article as saying:
“I don’t know what’s going to happen in the future. I’m really not a fortune teller or anything like that. I believe that more than fear of regulation that decline from the $20,000 peak was more of just a normal retracement,” Greenspan said, emphasizing that an abrupt increase in value of an asset is often followed up with a retracement.
“Whenever the bitcoin price moves and jumps into a new order of magnitude, we need to see some sort of retracement on that. It’s the same thing that when it jumped up from eight cents to $3.50 then it had a retracement back to a dollar. That’s a very normal thing after that kind of leap. So if we look at it now I believe we are about five or six percent up over the price a year ago,” he added. The article went on to state:
“Several analysts over the past few months have stated that the correction of bitcoin from $20,000 to $6,000 is reminiscent of its slump in 2014, during a period in which bitcoin failed to recover for over 12 months following an initial 80 percent decline in value caused by the now-defunct cryptocurrency exchange Mt. Gox.
However, the market is in a different state and the global cryptocurrency exchange market has a daily trading volume of $30 billion. The liquidity and volume of the market are incomparable to the levels in 2014 and the involvement of institutional investors and large-scale retail traders has led to various public instruments such as bitcoin futures that have allowed the market to mature.
Most recently, CCN reported that Goldman Sachs, one of the largest investment banks in the finance sector, has officially decided to launch a cryptocurrency trading desk after teasing its entrance into the bitcoin market for well over six months.”
Bitcoin: The king of cryptos dominated much of the headlines again this week, as its recent bullish price action took the market to within earshot of the 10k level. Since moving from below the 9k level to over $9600 during the week, the market has been trading sideways for the last few sessions. This could simply be the market consolidating before it takes a serious run at 10k.
Bitcoin Cash: This crypto also saw gains this past week, moving from around $1,360 to nearly $1520. The market saw some significant buying later in the week, and may also be moving sideways before taking a run at higher prices. The market is looking very bullish on the longer time frames, and a fresh leg higher could be seen in the sessions ahead.
Ethereum: This crypto has also put in a solid showing this week, having moved higher from $640 to nearly $800. Like some of the other currencies, Ethereum is looking a lot more positive on the longer time frames. prices are trending higher, and any bullish developments could set the stage for a fresh leg higher.
Litecoin: This crypto still seems unable to mount another sharp rally, although price action this past week was constructive. The bigger time frame is starting to look more constructive, and the $160 to $165 area could be an important level of resistance that the bulls need to take out. A move above that level could see increasing bullish interest and a run higher.
Ripple: This crypto also saw some bullish buying this week, but has still not seen any exciting rallies. The market seems comfortable right now between $.75 and $.95, and has thus far not been able to retake the psychologically important $1.00 level. Without any fresh news of its own, this currency may need a broad and significant rally across the sector in order to draw more buyers into the market.