FOMO Frenzy Triggers Bitcoin Price to ‘Blast Through’ $10,000 This Week, Predicts Analyst

Journalist:
May 28, 2019

By CCN: Chief Market Analyst at ThinkMarkets, Naeem Aslam, has laid down an enticing marker in an email note to his subscribers to predict bitcoin price booming past the crucial $10,000 milestone.

Aslam believes that considering the recent spikes in price and the positive sentiment abounding through the cryptocurrency market, the price of bitcoin could cross a vital milestone in the coming days. Should it breach the $10,000 mark, it would have reached the halfway point of its all-time high of $20,000 from December 2017.

Entirely Bullish

Aslam has never been shy of his bullish beliefs in bitcoin and its performance as an asset. He has also often been proven right in his predictions as he noted that Bitcoin jump from $5,500 to $6,500 at the beginning of May.

“A real embarrassing moment for those who said that the currency would never recover from its losses,” Alsam expressed with relation to the price recovery of the significant cryptocurrency.

“Well, it is the best performing asset of 2019 and the YTD gains are standing at 140 percent, and it has gone up by 70 percent only during May. This is what Bitcoin is all about, never doubt the resilience of the currency and the support it has among the community.”

On May 26, within a few hours, the bitcoin price climbed from $8,000 to $8,939, up by more than 11.7 percent against the U.S. dollar. Bitcoin is up 136 percent year-to-date with the ‘real 10’ volume of bitcoin hovering at $1.6 billion.

The ‘real 10’ volume, which calculates the real daily spot volume of bitcoin by evaluating the volume on exchanges known to have verifiable volume by Bitwise Asset Management, is up nearly seven-times since March.

Price punching above its weight

Aslam goes on, in his note, to describe why bitcoin is on track to breach a vital level such as $10,000, noting how it is trading above several key moving averages. He also casts his eye on what is to come following the $10,000 mark.

“Technically speaking, I think bitcoin price is likely to blast through level of 10K this week or by next week if the momentum continues at this pace,” said the analyst. “The price is trading well above the important moving averages, 50, 100 and 200-day simple moving averages and the most important among all of them is the 242-day moving average.”

He added:

“Check the resilience of this moving average on a daily time frame, and everything will become crystal clear. I strongly think that as long the price stays above this moving average, this bull run would continue.”

The high seen on May 26 was a new 12-month high, surpassing the old $8,750 mark in a sharp move that looks quite parabolic. While still far off from the bull run many are accustomed too from late 2017, this movement from bitcoin has it on track for more to come.

“The next important price levels are the resistance of 10K, followed by 15K level. It is highly likely that the price may break through the 10K mark and reach $12K or $13K and then start to retrace back to its support of $8K before the momentum tries again to reach the level of 15K again.”

A year of positive sentiment for Bitcoin Price

Bitcoin and the rest of the cryptocurrency space, has gone through what many have labeled as a ‘Cryptocurrency Spring’ in 2019. Towards the end of 2017 and all through 2018, sentiment around cryptocurrencies was incredibly low as the bear market snored on.

However, as Q1 built momentum, the wider crypto market gained value in a clear and distinct shift in the market sentiment. It has allowed Bitcoin to start rebuilding its past losses with less speculative bets from retail investors.

Predictions for the rest of the year vary in optimism, but it would appear that there has been a bullish turn of events. It should allow the cryptocurrency market the chance to ride this sentiment on a much more solid foundation, based on institutionalized adoption and interest.

Click here for a real-time bitcoin price chart.

This article was edited by Samburaj Das.

Last modified (UTC): May 28, 2019 08:47

Tags: Bitcoin
Darryn Pollock

I am a journalist that has covered a variety of topics from finance to economics, technology, and even sport. With the emergence of Blockchain technology and the rise in popularity of cryptocurrencies I have focused my efforts towards this fascinating and important ecosystem. I also have a legal background, and as such, have a keen interest in the regulation and adoption of Blockchain & cryptocurrency, as well as innovative and disruptive uses for this revolutionary digital solution.