Is the next big bitcoin rally on the horizon or is everyone just getting over-excited?
Almost every top trending headline in the cryptocurrency sphere lately is positive about bitcoin, and even the most conservative of analysts see a big price hike in the near future. A few aren’t just looking at next year or next month – some technical analysts are eyeing USD 10,000 in the next week.
Even the world’s least crypto-positive British newspaper, the Express, had something good to say about bitcoin. Its headline today suggests bitcoin will be the next ‘digital gold’, utilizing a quote from VanEck/MVIS director of digital assets Gabor Gurbacs. If that’s not a sign of changing times, then I don’t know what is.
The good times started early this week with the announcement by BlackRock that they are maybe, possibly, considering cryptocurrency. Just the very mention gave bitcoin and the majority of altcoins a healthy 10 percent jump on Tuesday to almost USD 7,500. Follow up news from Coinbase that they had received approval for the acquisition of a securities trading firm helped inject further liquidity into the market.
Analysts on the next big bitcoin rally
Admittedly the price has since leveled out and hung around the USD 7,400 level all week, but speculation has continued to grow. With BTC dominance well over 40 percent, some technical analysts have come out with predictions suggesting the next big bitcoin rally is just around the corner.
FXStreet’s Ken Chigbo outlined details of his 60-minute chart showing the formation of a bull flag pattern that looks to head north if BTC can break the USD 7,588 resistance point.
Market Watch’s Aaron Hankin reports that bitcoin is “on track to do something it hasn’t done in more than a year“. In the report, he points out that bitcoin has seen six consecutive days hitting green candles – a sure sign of a turnaround for an asset that has been trading down for months now.
If tomorrow brings a seventh day of trading up it will be the first time that has happened since last June, when BTC was worth only USD 3,000. Six months later it had soared by 600 percent.
Don’t go all in yet
Don’t get too excited though, warns Craig Erlam, an analyst from Oanda. He believes this could just be a small correction and further increases may be limited. While he agrees that the USD 10,000 mark is a crucial support point, he isn’t sure this is the next big bitcoin rally.
Other positive news includes an article by CryptoDaily investigating analysts reports that look at why bitcoin will grow substantially in 2019. It discusses beliefs by some speculators who foresee a bull run in the coming weeks but suggest investing slowly rather than in one large sum.
It’s possible that as we move into the second half of 2018, a large contingent of the community remember the previous positive build towards Christmas and are imagining a similar outcome. However, this year we face a far more complex array of factors which could have unforeseen effects on the market.
Cryptocurrency is no longer the fledging outlier it was a year ago – it has evolved into a global player of significance that has disrupted governments worldwide and attracted the attention of regulators and lawmakers. With the spotlight shining brightly upon it, what comes next could be critical.
Mark Hartley is an IT specialist, freelance writer, keen traveler, and blockchain enthusiast. He has worked on the trading floors of the world’s biggest interdealer broker in London and helped integrate crypto-services into IT trading systems. When he’s not searching for the world’s most beautiful beach, he’s nose deep in any crypto and blockchain related news.