Bitcoin price is up another 14% today as the cryptocurrency briefly surpassed the $8,000 level, currently trading at $7,963 on Bitstamp. The recent bull run began on April 30th and the cryptocurrency has almost doubled in price in the past 2 weeks. Some analysts believe that Bitcoin will reach the $9,000 level in the next few days or weeks after which it will test the $10,000 level.
Despite what you may have read on the news, the real reason behind the recent bull run is unclear. There have been a series of events that should have impacted cryptocurrency prices negatively, but the recent market proves that crypto has a mind of its own and is not necessarily affected by current events. Many thought that the Binance hack, the recent siezure of the darknet marketplace Wall Street Market and the take down of Deep Dot Web would have negatively impacted the market, however as we have seen Bitcoin’s bull run only intensified.
One reasonable speculation as to the reason behind the recent price hike is institutional money flowing into cryptocurrency. After all its not only Bitcoin that has recently risen in value. Nearly all cryptocurrencies are seeing double digit percent price gains and the overall crypto market cap is up over $50 billion this month alone. There is no doubt in my mind that money is flowing into the cryptocurrency ecosystem which is most likely coming from retail investors.
That is a great sign for cryptocurrency as we can now see potential of breaking 2017 and 2018 all time highs given that the bull market will continue. Right now is also a good reminder to make sure not to make any trades or investments based on emotion or FOMO, you will have a bad time.
Relative Strength Index: The RSI at the time of writing is a healthy 67 points. Having a strong RSI means the market the fuel needed for more volatility, in this case the movement will most likely be upward.
Bollinger Bands: The price line is also within the upper and lower bands which means there is potential for either upward or downward movement. The price line touched the upper band briefly when Bitcoin hit $8089 on Bitstamp, but the current level of $7982 is well within the range.
The good news is that the market has plenty of room for upward momentum. If Bitcoin continues on the recent path then breaking through $8000 in the next few hours is anticipated. However, as we are seeing the RSI slow down there may also be some sideways in the near future. Right now would be a good time to either enter a long position or close your position depending on what you anticipate BTC of doing. Tradingview still shows a buy signal, however its not as strong as it was the past couple days, proceed with caution.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.