The price of Bitcoin experienced an abrupt surge from $9300 to $10,500 on July 18 as the market saw a rebound of well over $1000 in just minutes.
This sudden bounce will definitely have analysts speculating and giving their opinions on what’s driving the markets and causing this sudden animation. A lot of journalists remain cautiously bearish in the short term duo to the market’s inability to break out of the $10,850 key resistance level.
As said by technical analyst Eric Thies, throughout the journey to the $20,000 2017 BTC price, the market frequently experienced pullbacks in the range of 31 to 40 percent against the dollar.
“Bull run in 2015-2017 included run-ups, typically followed by a retrace to touch the top of the prior high. These drops ranged from 31-40%, before rinsing/repeating onward. Looks very similar to what we are seeing now,”
Since BTC hit its 2019 peak of $14,000 the price has fallen by 25 percent to settle in the region of $10,500. No one is certain that Bitcoin can bounce back to the peaks of 2017, all we can do is speculate and discern the drivers of the market movement. There is indeed a lot of optimism among those keen on the crypto price action. In the run up to the 2017 crypto boom, it was widely believed that retail investors were driving the market to its peak. There is a lot of optimism now because of the institutional interest in the crypto space.
Analysts and traders are of the opinion that the crypto space has now matured from being a space of exuberant nerds and dreamers, to a space where key institutions such as JPMorgan and Facebook have ventured into. The space is now seeing a lot of institutional investment through regulated investment vehicles such as the CME Bitcoin futures market and Grayscale’s Bitcoin investment Trust (GBIT)
Analysts have gone on to speculate whether BTC can reclaim the positive short term trend it has been on. Technical analyst Josh Rager noted that although Bitcoin could reclaim its positive short term trend it would need to surpass resistance levels near the $11,000 mark.
People generally have mixed feelings about the direction of the crypto markets. On one hand, the BTC prices that have grown from $3,500 in the beginning of the year to the year’s peak of $14,000 have encouraged many investors and developers on the other hand; cynics such as U.S president Donald Trump have cast dark clouds on the space.
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