The Bulls are Back…
Bitcoin (BTC) and the rest of the cryptocurrency market are seeing a major resurgence of cash today. The price soared $400 in a few minutes. The market has added $14 billion after seeing a devastating week, where even some of the biggest bulls of the industry were doubting the immediate future.
Other major cryptocurrecnies – including ethereum, ripple and bitcoin cash – mirrored the fortunes of bitcoin, with gains across the cryptocurrency market of between 5 and 15 per cent over the last 24 hours. The turn-around follows months of steadily declining prices that have been punctuated by very few gains since the highs of 2017. The current price of $6,500 is only one third of bitcoin’s peak, which reached close to $20,000 in December.
On the technical side for BTC, the shorter-term moving average appears to be holding as resistance for now, but a bullish flag also appears to have formed. Bitcoin appears to be off to a fresh positive start so far this quarter and month as it staged a sharp rally. It may have also gotten a boost from bullish remarks by BitMEX co-founder Arthur Hayes who predicted that it will reach $50,000 by the end of the year. He cited: “We could definitely find a bottom in the $3,000 to $5,000 range. But we’re one positive regulatory decision away, many an ETF approved by the SEC, to climbing through $20,000 and even to $50,000 by the end of the year.”
Ryan Rabaglia, a partner at Octagon Strategy, said that despite major corrections, the cryptocurrency market has always managed to come out of bear cycles with hundred percent gains and big rallies. He stated that the market will see its previous numbers by the end of 2018 and funds are still bullish and optimistic regarding the mid-term growth of the industry.
“Year over year, the cryptocurrency market is up well over a hundred percent still, the markets are still in the growth phase and it is still a nascent industry. The regulatory stance of the industry is a double edged source. The uncertainty that is driven around this regulation is what gives pressure to this market and drives this market further down” Rabaglia said, emphasizing that the establishment of regulation will lead the market to surge in the long run.