Bitcoin Bulls Seem to Have Regained Their Strength following the surge of the cryptocurrency by more than $1,000 within 24 hours. The new surge in the price of Bitcoin is believed to be signifying the end of the bearish trend which sent the price rolling down to the $6,000 range.
The recent bearish trend of the cryptocurrency caused a panic among crypto traders when the price went below $10,000 at the end of January and continued to go down, wiping out a huge percentage of its previous gains. The surge has not just been seen in Bitcoin but also in other cryptocurrencies meaning the market cap for the entire cryptocurrency market has been characterized by a noteworthy gain.
Bitcoin has been historically known to influence the price of other cryptocurrencies. For example, many altcoins that are currently in the market also tanked when Bitcoin started going south. It is thus no surprise that they are also looking bullish. Some of the big gainers in the altcoin market include Bitcoin Cash whose price was in the low $600s a week ago but was trading above $750 at the time of this press. Another big gainer was EOS which kicked off the week on Monday below $6 and was trading almost at $9 at the time of this press.
What the new bullish trend means for the market
Bitcoin?s rallying price is definitely a welcome sigh of relief especially for those that had invested in the cryptocurrency market, particularly those that had bought and held in the hopes of selling at higher prices. Many believe that the spike in the price of the cryptocurrency marks a reversal of the bearish trend that has been the case for the past few weeks. However, some analysts have warned that Bitcoin might not be out of the woods yet and that the spike might be a bear trap. If this is the case, then the price should turn bearish in a short time.
Will the predictions become a reality?
There has been a lot of predictions about Bitcoin and the most common one was that was a bubble waiting to burst. The recent crash is believed to have been that bubble bursting. Some of the latest predictions suggested that Bitcoin would become bullish again but the price will not go as high as it did towards the end of last year. Other analysts believe that the cryptocurrency will hit new highs above $25,000. Some outrageous predictions suggest that the price will go to $1 million in the next few years. One might be tempted to say that is impossible but then again a few years ago, the concept of cryptocurrency was considered impossible.
It is also worth mentioning that there were also predictions that Bitcoin would continue crashing to around $1,000. If anything, Bitcoin has proved to be very unpredictable and the direction in which it goes is anyone?s guess. However, it is clear that the cryptocurrency is affected by market factors and news pertaining the cryptocurrency market.
It is thus important to consider the kind of news and developments that are coming up regarding blockchain and the cryptocurrency market before making any investment.
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