Last week, the cryptocurrency market experienced quite a lot of price adventure. However early this week, the adventure was reversed so that Bitcoin (BTC) the leading cryptocurrency crashed to $3700 from last week’s Over $4,000 after hanging above $3,800 for some time However a few hours ago, the market has started to recover and Bitcoin is well over $3,800 at press time.
This is the first time in months since 2018 when BTC rose above $4,000 and crashed but established a resistance above $3,700 for a few days and started recovering again, rising above $3,800 within 24 hours. Although too early to say if this is a potential bull run, it is indeed remarkable and a good sign for the cryptocurrency and the market as a whole.
A closer look at the price of Bitcoin and Ethereum (ETH) also reveals something strange. The price growth has been disproportionate. ETH has always surged at a rate that seems to correspond with that of BTC. For instance in last week’s green market, at the price of $3,743 for Bitcoin, ETH was somewhere around $137. However, according to Coin Market Cap, BTC is currently trading at precisely $3,883.08 while Ethereum is at $135.42. What could be responsible for BTC’s relative speed?
According to an article published by marketwatch yesterday 4th of March, 2019 BTC trading patterns show “a striking resemblance” with those between 2011 to 2015 and 2015 to 2019. According to analysts Michael Graham and Scott Suh of Canaccord Genuity Capital Markets, if these patterns continue then Bitcoin will be heading to its all time high price of $20,000.
“Looking ahead, if bitcoin were to continue following the same trend as in the years 2011-2017, the implication is that bitcoin would be bottoming approximately now and would soon begin climbing back towards its all-time high of ~$20,000, theoretically reaching that level in March 2021,” they wrote.
Although cryptocurrencies have always responded to price trends the same way Bitcoin does, the top cryptocurrency has on a number of occasions outperformed altcoins and the pattern is appearing again, this time probably to last longer. With this current trend of bear resistance and the determination to soar high, Bitcoin may be shooting higher even faster than has been projected or expected.
