Bitcoin [BTC] broke above $10,000; the rise can be attributed to the positive sentiments around cryptocurrency regulation. BTC avoided another fatal fall a price bounced a second time from the swing lows at $9400.
The price of Bitcoin at 15: 45 Hours UTC on 31st July 2019 is $10,063. It is trading 4.9% higher on a daily scale.
Now, that the regulators are beginning to shun the possibilities of banning cryptocurrencies. The risk of investment in cryptocurrencies reduces considerably. The Fed rate cut anticipation has also contributed to the buying pressure on Bitcoin.
Moreover, Social Media sentiments are also on the rise. Mati Greenspan, the Senior Market Analyst at eToro noted,
As can be seen from data at TheTie.io tweeters are incredibly positive now that we’ve seen a solid bounce off the $9,000 support level.
Recently, it TheTie also inferred that social media sentiments have a huge impact on cryptocurrency prices.
Nevertheless, a couple of bearish indicators have also been brought into the light. Tone Vays, Derivative Trader and Trade Analyst stated that,
Sometime in the first two weeks of August, I give it about a 70% chance that is going to go sun $9000.
According to him, to break the trend Bitcoin price must break above $10,800 and $13,000 tops to turn bullish again. He said,
A break off this double top $13000 will send Bitcoin to All-Time Highs
Moreover, according to him, the support could be a sub $6000 levels. However, as suggested earlier by analysts $7500-$8,500 could be the next bottom. As markets have refused to break below $9000 and have been mostly bullish. B. Biddles noted,
I wanna see what demand is like under 9k, or if 9k’s resilience starts prompting stronger rejections…
Bitcoin NVT ratio, which compares the on-chain metrics with the price on Willy Woo’s chart is currently at 77, was slightly over-bought. However, the trading volume on cryptocurrency exchanges Mati Greenspan noted,
Today action across major exchanges has returned to normal levels and even transfers on the blockchain have come back from their lows this morning.
However, the trading volume of Bitcoin futures on CME has been low.
The rise comes as pleasant news for Bitcoin investors. Moreover, while the regulatory concerns are diminishing, volatility is still a characteristic feature of the markets. Hence, the traders must be always cautious with stop losses for either trades.
Where do you think the price is headed, ATHs or bearish bottoms? Please share your analysis with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com