Are we really starting to believe that maybe the tides may just be turning with Bitcoin?
There seems to be a shift in sentiment over the last few weeks and pivotal news would suggest that a legitimate case for a bull market may be near.
- Hackers managed to steal around $40 million in Bitcoin from arguably the biggest cryptocurrency exchange know as Binance.
- Chinese governments hinted that they would ban bitcoin mining operations (Again!)
- Bitcoin reached $5,980 earlier this week before pulling back to $5,670 leading skeptics to believe we could see a further decline.
Now the interesting point to note from the above is that the same news would have absolutely plummeted Bitcoin’s price by at least $1000 to also see red across the market.
I think this may lead many to believe that perhaps the market is maturing!
Another factor in highlighting a bullish stance on Bitcoin is the announcement Fidelity Investments made to begin a custody service to store Bitcoin.
Fidelity will buy and sell the world’s most popular digital asset for institutional customers within a few weeks.
Spokeswoman Arlene Roberts advised the following;
“We currently have a select set of clients we’re supporting on our platform, we will continue to roll out our services over the coming weeks and months based on our clients’ needs, jurisdictions, and other factors. Currently, our service offering is focused on Bitcoin.”
In other words…
I think you may want to keep your eyes peeled over developments within the next few weeks.
So how is Bitcoin doing from a technical analysis perspective?
Bitcoin Price Analysis – Can BTC break resistance at $6,400?
Bitcoin finally broke out of the ascending channel on the 8th of May before climbing above the psychological resistance level of $6,000.
Currently, Bitcoin is trading at $6,289 against the US Dollar and the next level of resistance seems to be around $6,400 before the next huge resistance point at $6,600.
For those that remember, Bitcoin was consolidating around the $6,400 price level before the significant drop in price to the $4,000 region.
I imagine there may be bears hovering around waiting for the opportunity to short the market.
This region held very well as support through 2018, so, to suggest, this may be a straightforward higher climb that may seem premature!