Bitcoin enthusiasts are wearing broad smiles once more, as Bitcoin prices continue to defy the odds and press onward and upward. Cryptos have built a reputation upon price volatility and wild market swings of up to 10% or more in a single day, but for the entirety of 2019, Bitcoin has behaved like a stable, gradually appreciating asset of another color. February was its first positive gain month since July of last year, and now March is shaping up like a repeat performance, as the leader of the crypto world keeps its upward trajectory on track and once again tests the psychological $4,000 price point.
Analysts are still shaking their collective heads, not quite sure what to make of these positive moves in the market. Critics have been too numerous to count in recent months, nearly all projecting heavily downward moves, as Crypto Winter marched on with a devastating beat. The move north by Bitcoin has also been accompanied by a similar upward ramp in trading volumes, a good sign for the future. Bitcoin’s grip on the total market cap for cryptos has actually dipped to 50.6%, an indication that the current level of crypto support is broad-based in that altcoin tokens are gaining at a quicker pace.
One analyst’s remarks reflect upon this developing situation: “Most coins have very bullish setups right now, virtually all of them sitting on annual support. When BTC moves sideways, liquidity will move into alts. Recently we’ve seen huge moves, 40%, 80%, even 150% overnight gains by some alternative cryptocurrencies.”
The question, however, on everyone’s lips is whether the current jostling about is temporary or a sign of better times to come? A host of respected crypto analysts have responded with positive forecasts, each supported by some arcane technical indicator that reflects a growing groundswell of support, while sellers appear exhausted at the $4,000 level. If you believe these fellows, then Bitcoin will soon break out and surpass the $5,000 mark in a matter of weeks, if not by May.
The general thinking of these folks is that Bitcoin finally formed a solid bottom at $3,100 and has progressively moved upward in excess of 25% to its present level of roughly $4,000. The actual figure can vary by region, since exchanges form their own local market prices, but the composite average has hovered about $4,000 since Saturday’s trading. Market cap for the entire cryptosystem has also improved nicely over the recent week, having jumped from $134 billion to just under $140 billion, a 4% hike in one week.
While the crypto bulls have been shouting from the rooftops, the “boo birds” refuse to abandon their perch. For these crypto cynics, the present accumulation phase is but a fleeting moment before the inevitable downturn to territories south of $2,000. One example of this genre is Bloomberg Intelligence analyst Nike McGlone, who recently wrote: “The entire industry is ripe to resume a path to lower prices. Conditions are akin to November, just prior to the collapse. Prices are consolidating within narrowing ranges, with a few sharp bear-market rallies that appear fleeting.”
Bitcoin no longer resembles a rollercoaster ride, but the ride is interesting just the same.