Since Monday, bitcoin price has leaped 13.5% to hit new levels at around $9000 for the first since May last year in what is seen as a bullish sign. At the time of writing, bitcoin is trading as high as $8,810 on Coinbase.
Bitcoin Price | Highest Since 2018
Yesterday’s jump brings bitcoin to a maximum year to date increase of around 142.40%. Could this be the end of the 2018 bearish phase that saw bitcoin price lose over 70% from its all-time high of $20,000. Bulls are starting to believe that bitcoin will soon retest its all-time highs although it is still short of the current price target of $11,500.
Bitcoin has been given a buy rating by a number of analysts and this sentiment is based on commentary from industry players like Fidelity Investment resulting in the momentum of the coin. As of March this year the Boston based form which manages assets worth over $2.3 trillion indicated that it will begin offering bitcoin trading services to a number of its customers.
However, there are those who hold the presumption that bitcoin is currently overvalued. JPMorgan Chase analysts noted recently that the rate at which bitcoin price is climbing is beyond its intrinsic value. However many crypto enthusiasts have slammed the claims stating that the banking giant did not accepted bitcoin since the beginning and is just being stubborn.
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Potential Pullback
As the bearish and bullish arguments go on there are technical analysts who have predicted bitcoin to reach a six-figure rate. However, these analysts believe there will be a significant pullback in price before the rallying begins. Cryptocurrency investor and trader Josh Rager said that based on the historical behavior of bitcoin price there is a possibility of correction of around 30% on every top formation. Another crypto analyst, Cred, also foresees a bitcoin price scenario as low as $6,182 because of the overbought conditions before a breakthrough to around $10,000.
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