Since the fallout from the Tether fiasco markets had started
to cool and even show signs of pulling back. Analysts predicted a drop back to
lower levels, led by Bitcoin if it could not break higher. As we end the week
the opposite appears to be happening as BTC climbs back up towards its 2019
high.
Bitcoin Back Over $5,500
Bitcoin hit a weekly high of $5,540 an hour or so ago and continues to move higher. It has spent the best part of the past seven days around the $5,300 level as altcoins lost ground. On Wednesday BTC shifted gear and moved up to $5,400 and today it has taken a further step up to $5,500. The 2.5 percent daily gain has raised total crypto market capitalization back towards $180 billion – the top of its trading range over the past month.
Bitcoin volume is currently close to $15 billion and its
market cap is almost at the $100 billion milestone once again. BTC market cap
has not been over $100 billion since the mid-November dump down from $6,000.
Further moves in this direction could result in a swift push back up to $6k for
BTC.
Analysts and traders on twitter have observed some
similarities between currently market movements and those from 2017, just
before the big bull run. Popular tech analyst fil₿fil₿ observed;
“There is some similarity between 2017 and 2019 in the way in which we bottomed from $5k->3k 2017 and broke back to $5k. It took a lot longer this time in a bear market. Overlay & extrapolate that trend and Dec 2019 could be fruity if we can get over the Tether risk.”
50 Week MA Crucial
The
next move to $6,000 will be crucial as BTC will break resistance at the 50
week moving average which has been a barrier for the entire bear market. This
currently lies in the $5,600 area where Bitcoin hit resistance previously. From
then on things could really start to ramp up as a new wave of fomo kicks in and
memories of $20k BTC start to flood back.
Technical expert Murad Mahmudov has charted how significant
this 50 week moving average resistance
level is here and shown how it has acted in previous market cycles;
The sentiment at the moment however is with the bulls as crypto markets shake off the Tether news and start moving once again. Weekends are usually quiet so there could be a little action this Friday for Bitcoin and its brethren.
