The day after the world’s most prominent crypto exchange
gets hacked Bitcoin breaks the psychologically significant $6,000 barrier. The
big question now is will it continue upwards to the most traded price of 2018,
$6,400.
Unlike in previous situations, Bitcoin and crypto markets ignored the negative news and media FUD following the Binance hack. Over the past 24 hours BTC has surged to a new six month high of $6,080. During Asian trading a few hours ago Bitcoin finally broke above the $6,000 barrier showing no signs of retreat in the wake of the Binance hack.
What has been remarkable is the lack of mainstream media FUD
that usually flows following any bad news in crypto land. Both Forbes and Bloomberg
have run Bitcoin price articles as it reached $6,000. Forbes
noted that there is a huge level of resistance here but Arca’s CIO, Jeff Dorman
said that if BTC surpasses this level “there could be little standing in
the way of rapid and significant gains.”
According to co-founder and chief executive officer of Galaxy
Investment Partners LLC, Michael Novogratz, Bitcoin has won
the war of the cryptocurrencies. Speaking to Bloomberg he added that “I
feel better about Bitcoin today than I have at any time in my career.”
Bitcoin’s market dominance is at an 8 month high of 57 percent at the moment so
it is battering all of the altcoins which have shown little movement over the past
few days.
Now that the $6k barrier has been hit, analysts are looking
at where BTC will go next and some are suggesting that it could get back to the
most traded price of last year, $6,400.
Novogratz however expects BTC to struggle around
$6,000 for a while. It traded in this range for almost three months last
year so may well consolidate here for quite a while in 2019. There is a lot of
resistance at $6k but some analysts and traders are confident that things could
go higher;
“I tend to think this $BTC rally will continue to accelerate until we hit a resistance simply too big to handle. I’m keeping my longs open. Bear market over. Bull market in? – I want to see how we handle $6350.”
There is a renewed sense of optimism among the crypto community today as the Binance hack news fades and Bitcoin makes it back to its psychological trading level. However, it is also too easy to forget that BTC is still down 70% from its all-time high!
