By CCN: The bulls are back. After a prolonged period in a sideways range, the bitcoin price has finally established a powerful uptrend. As BTC breaks the $6,000 level, enthusiasm is returning in waves to the cryptocurrency industry. Even the Binance hack has failed to put a dampener on a buoyant BTC/USD.
Why all the enthusiasm about the bitcoin price breaking $6,000? This level has been closely watched for some time. A bounce through this technically significant price point has been long-awaited, and there are several bulls desperate to dive into the marketplace. Speaking to Forbes, Tim Enneking of Digital Capital Management is hugely confident that a clear break will lead to further gains in the original digital currency. He said:
"6k will probably [be] a tough nut to crack, but once it definitively falls, there will almost certainly be a strong surge higher."
It's not hard to find analysts who think this rally has legs. Here is TradeBlock's director of digital currency John Todaro outlining once again how strong the momentum is in bitcoin:
"The market over the past 1-2 months has seen significant upward momentum and has brushed off numerous negative headlines within the space. If we break above the $6,000 level, we could continue to trade higher as momentum builds and negative news reports have a limited downward impact."
Binance is the world's largest cryptocurrency exchange. Because of this, it seems safe to assume that the recent hack of 7,000 BTC should have been disastrous for the BTC/USD price. So far this has not been the case at all. Bullish trends look their most potent when they ignore headwinds and keep surging. This is precisely the characteristic that bitcoin is displaying as it keeps breaking out to fresh yearly highs.
In an interview on Fox Business, Bitcoin perma-bull Mike Novogratz was spreading his usual brand of positivity. As you can see in the following video, he doesn't have much time for Warren Buffett's negativity. Novogratz expects BTC/USD to be back to its historic highs of $20,000 within 18 months.
Whether you look at fundamental or technical analysis, it's hard to come up with a reason to bet against BTC's bounce through $6,000. Crypto adoption is picking up pace, search interest is returning, and the dip buying is back.
The main threat looks to be overbought conditions, but shorting bitcoin when it's in this kind of mood has historically been like trying to hold back the tide.
Last modified (UTC): May 8, 2019 11:07 PM