Bitcoin’s price rises again. Many pundits have indicated that this has created a new paradigm where Bitcoin’s price is now finding new support levels. This also means that a bullish trend may be in the offing although many think that this isn’t so.
Bitcoin’s prices have been under severe pressure lately. The downward trend suggested that prices may have finally fallen to less than $5,000 or even worse indicating the lack of footing for a support level. These fears, however, were dispelled as Bitcoin’s price rose and several cryptocurrencies traders noted that a bullish trend may be underway.
I haven’t seen anyone talk about this yet, but the 4H 50 & 200 EMA made a clean bull cross today.
— Byzantine General (@ByzGeneral) January 7, 2020
The retracement which took place on Tuesday also cleaned out several short positions of cryptocurrency traders who had used historical price analysis to predict a bearish trend at this particular time of the year for Bitcoin prices.
Cryptocurrency Traders Expected Bitcoin’s Price Rise
Bitcoin’s price rise wasn’t unexpected though. Many cryptocurrency traders had been waiting for Bitcoin prices to settle at $8,000 for a support level before a major breakout. For now, it seems like they were right about their expectations. This though also remains yet to be seen as volatility of Bitcoin prices is still high within the crypto space.
– Breakout of the 47-day trading range
– No swing failure at the previous highs
– Thin air above us
More acceleration likely if we can maintain above 8K. FOMO and short capitulation has yet to kick in. Travelling quickly on the way down = easy on the way up. pic.twitter.com/uNgSkZhEsb
— RJ (@RJ_Killmex) January 7, 2020
Bitcoin dominance is not helping either as higher levels of Bitcoin dominance within cryptocurrency markets aren’t giving the altcoins any breathing space. With a market dominance of 69.1% Bitcoin is an investors’ darling at the moment. This will also put pressure on the prices as investors believe that the first of the cryptocurrencies offers greater assurance of the safety of funds than the altcoins that have a wide variety of uses.
Bitcoin’s Price Rise May Reverse
Other analysts support this bull trend for Bitcoin’s price rise. They, however, believe that the new trend is only for the midterm before the battle between the bulls and the bears returns to the fore.
When price starts deviating away from the 4hr 200MA, out of the bands, especially after consolidation, and a BB squeeze, a new trend usually emerges.
There is not much more to say, I will be buying dips. Send it. pic.twitter.com/GB1RA4M62n
— CL (@CL207) January 7, 2020
Similarly, others think that Bitcoin’s price rise may not be the beginning of a Bull run as several factors are still against the recent retracement. Pundits have indicated that the upward momentum for Bitcoin prices has slowed since the retracement that saw Bitcoin prices rise by 4%.
This has led many pundits to believe that a reversal in momentum is likely.
Other Traders Expect a Bitcoin Price Reversal
Other cryptocurrency traders believe that history will repeat itself and Bitcoin prices will reverse sharply to pre-retracement levels.
Listen man….I don’t want to bum anyone, because a move is a move if you caught it.
— Cantering Clark (@CanteringClark) January 7, 2020
These traders think that $8,000 is a key resistance level rather than a support. They also believe that volatility is hiding the true nature of Bitcoin prices at the moment. This has also created a situation where speculation rules rather than solid technical analysis. Based on the varied opinions on Bitcoin’s price rise, it can be inferred that most of the cryptocurrency traders are still unsure of where Bitcoin prices are going.
2020 holds significant events for the crypto space. One halving event is going to occur this year. Significant changes in the regulation of the cryptocurrency space by governments are also here. Geo-political situations including a potential war between the U.S, and Iran are also set to occur. After the Iranian missile attack, the price has moved above $8,400 which is a new record for 2020.
These all haven’t been factored into the calculations of many cryptocurrency traders. As the best traders know everything can’t be seen from one perspective alone. The technical analysis must always be accompanied y solid fundamental analysis before a decision to trade can then be made. As the Japanese say: “The reverse side also has another side”.
At the moment of writing, Bitcoin price remains at the level of $8,317.40. This is a +5.16% change in twenty-four hours.
Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.