With the major plunge in the market cap and in the price of Bitcoin, most analysts and crypto enthusiasts are predicting a lower bottom for Bitcoin than before. The price of Bitcoin has surprisingly plunged to $3,676 at press time and shows signs of further decrease as the reds are increasing every minute.
The horrible plunge seems to be increasing and has dragged down the market cap from $138 billion to merely $122 billion within a few hours. Almost the whole market, which was showing a subtle increase in valuations, has entered a bloodbath once again. Analysts are predicting a lower low for BTC, but once the low is achieved, a BTC rally is pretty much anticipated. According to Clem Chambers, CEO of ADVFN plc and Online Blockchain plc,
Though Bitcoin at $2,500 would not be a great surprise in the first quarter of 2019, we can expect the king of cryptocurrencies to rally hard later this year with levels making the previous all-time high possible in 2020.
Showing positive hopes for blockchain and crypto, Clem said that crypto and blockchain would be defining the next 25 years for tech. He stated,
Crypto is still here after all the scandals and crashes. It’s not going away and will likely explode in value again. Last year was like the early 1990s for tech. There are booms and bubbles and crashes to come as a huge industry is created. Blockchain/cryptocurrencies and other applications will define the next 25 years.
The bear market has made investors and enthusiasts very skeptical and careful about entering the crypto space. Projects with no use cases, and applications that don’t affect most people will eventually fade out because of the spreading awareness. Kevin Kelly, co-founder of Delphi digital was of a similar view, he said talking to BlockPublisher,
Crypto investors have begun to demand more than just a whitepaper and a dream from projects. Skeptics are the new enthusiasts, which will likely shift the focus this year from hype and speculation to real world applications with actual development progress.
All in all, it is expected from the market to see a lower bottom and after the low is achieved, the market is expected to rise, but with all that is going on, the investors are now very careful with their investments and crypto project would have to be careful with their use cases if they want to survive in the startup tsunami.
Bitcoin-Related Stocks Soar In Stock Market; Is Bitcoin Responsible?
The United States stock market on Monday saw a different dimension related to price movements of stocks. Analysis and price charts on the 24th June 2019 showed that virtual currencies Bitcoin-related stocks soared immeasurably higher than their fiat counterparts. This is coming after Bitcoin was seen to have temporarily broken the $12,500 resistance level and settled above it. This remarkable price surge seen in Bitcoin was the first recorded in about 15 months, and this made it a fast buying material.
Blockchain Relatives Stocks
Grayscale Bitcoin Investment (GBTC) is a virtual currency which is linked to the price of Bitcoin. The stock must have caught the bullish fever and followed every of Bitcoin’s upward waves. The stock was seen to rise temporarily by 13%. Grayscale Bitcoin Investment appeared to have few other supporters with similar blockchain relationships. Riot Blockchain, DPW Holdings, as well as Marathon Patent Group also made rapid uptrends as they all shined in bright green. All these stocks doubled their prices before the closing hour.
On the other hand, Peter Schiff an American stockbroker and financial commentator says
Both gold and Bitcoin prices have risen recently, causing many to erroneously conclude that the two are rising for the same reason. But stock and bond prices are also rising. Bitcoin and stocks are rising as speculative assets, while gold and bonds are rising as safe havens.
Bitcoin’s aggressive turnaround
Bitcoin has particularly moved up in a very aggressive bullish rally which saw it recording a new all-time high within the past 15 months. At the moment, no one can exactly predict Bitcoin’s next line of movement but many are very hopeful and the optimism is very much present. Bitcoin is expected to make more radical price surge, eventually surpassing its 2018 all-time high of $20,000.
Alts Waiting To Join The Rally
However, as bitcoin excelled in all ramifications, taking into consideration its market price and capitalization, this is not to be said of alt coins which seem to have been left behind in this series of radical movements. Popular alts like Litecoin is still trying to nurture the common touch.
At the time of writing this article, Bitcoin had doubled its price in about 5 weeks period and had also doubled its market cap in just a few days. This new development also steered arguments and criticism from Bitcoin’s antagonists who seem to be more interested in Gold.
Bitcoin Versus Gold
Gold, just like Bitcoin also rose up the charts and saw significant improvements. However, this was immeasurably smaller in capacity and totally incomparable to Bitcoin’s prowess over the past few weeks.
Present-day Bitcoin market has matured, improved on the protocol side, claims Blockstack PBC CEO
The cryptocurrency industry today has everyone’s attention, with the present bull run pumping Bitcoin’s price and driving the market capitalization through the roof. A series of investors and analysts have predicted that the bullish momentum experienced by the market is currently more mature than the one in 2017. This was backed by a recent SFOX report as well.
In a recent segment on Bloomberg, Muneeb Ali, CEO and Founder of Blockstack PBC, highlighted that the crypto-market was basically very repetitive, as it basically does the same thing time and time again, but on a different scale.
“The market goes up to its all-time-high, crashes down, takes a longer time to bounce back and if you have been in crypto long enough, you are pretty much expecting it.”
Ali suggested that Bitcoin had made significant progress on the development and protocol side as presently, a lot of highly skilled developers and engineers are involved in the technological aspect. The remark can be backed by the fact that Bitcoin recently released its Erlay protocol which was supposed to reduce bandwidth usage in the network and improve system efficiency.
The involvement of institutional investors has made Ali skeptical about the market since the technology is fairly new and “no one really knows” what is going on or where it is going in the future. He believes that the present bull run has less to do with institutional investors and more with the fact that the overall market was maturing.
Further, it was recently suggested that Bitcoin played a role in driving up the prices of Asian crypto-related stocks in Tokyo and Seoul, with certain companies witnessing hikes of more than 10 percent over the past week. The surging Bitcoin price and its corresponding market cap affords a lot of opportunity for these stocks to rise even higher.
Bitcoin [BTC] Forges Another Assault On $15,000 Reviving Investor Interest
- Double-digit gains on Wednesday revive investor interest in Bitcoin and other cryptocurrencies.
- Bitcoin surge is supported by key technical indicators including the RSI and the MACD.
It is evident that Bitcoin is not going to rest until it achieves the milestone by breaking above $15,000 in the coming few weeks. Following the break above $12,000, BTC/USD pushed for further correction higher inching closer to $13,000. A new 2019 high was from at $12,946, however, this will not hold as the high for long owing to the increasing bullish pressure at press time.
BTC/USD 4-h chart
BTC/USD trading pair is correction higher 10% on Wednesday with a relative change of +1115. In fact, a break above $12,900 is the kick that Bitcoin is waiting for the much-anticipated movement above $13,000.
As discussed by Coingape earlier today, the technical levels remain positively intact. The Relative Strength Index (RSI) continues to form a higher low pattern. The up trending indicator signal points towards a stronger bullish momentum. At 88.22, the RSI is back to the levels seen on May 12 following the break past $7,000 and later $8,000.
As long as the RSI stays in the overbought and respects the trendline observed on the chart, correct past $13,000 will be a walk in the park. The strong bullish momentum is also supported by the trends seen with the Moving Average Convergence Divergence (MACD). The indicators divergence increase is an indication of building bullish momentum and the tight grip from the buyers.
Bitcoin Key Technical Indicators
Key Resistance: $13,500
Key Support: $11,000 – $10,500
MACD 4-h: Increasing divergence suggest stronger bull grip.
RSI 4-h: The upward trend continues to cement the bull’s presence on the market.