The bitcoin price has rebounded to $8,100 over the past 24 hours, after it dropped to $7,850 on April 17. The speedy recovery of bitcoin and strong performances of major cryptocurrencies like Monero and 0x allowed the market to climb to $334 billion, eyeing a move to $350 billion.
Moving averages and momentum oscillators point toward a neutral zone for bitcoin, which is often an optimistic indicator of short-term growth. The Relative Strength Index (RSI) of bitcoin remains below 55, signifying that bitcoin is neither oversold or overbought by traders in the market. A neutral RSI zone is crucial for bitcoin in the short-term, as oversold conditions demonstrate a bear cycle while overbought conditions imply a drop in value will likely occur.
Momentum indicators like moving average convergence divergence (MACD) are providing strong buy signals, and both the exponential and simple moving averages show strong momentum of bitcoin. With its 3 percent recovery, it is likely that the bitcoin price will move towards the $8,500 mark in the next few days if it can sustain its momentum over the past 24 hours.
Fundamentally, bitcoin and the entire cryptocurrency market at an ideal position to grow. This month, some of the largest institutional investors like the Soros Fund, Rockefeller’s VenRock, and the Rothschild family announced their entrance into the cryptocurrency market. Some analysts suggest that the massive increase in value from $6,900 to $8,000 and the second surge from $8,000 to $8,500 were caused by a large inflow of capital from these institutional investors.
This week, South Korea’s biggest cryptocurrency exchange Bithumb also revealed its holdings and profits, because the company is operated by BTCKorea, a public company listed on the Korea Exchange. According to the public document, Bithumb holds more than $6 billion on behalf of its users, and has generated more profit than its revenues because of their holdings in cryptocurrencies.
As CCN.com previously reported, “it is likely that Bithumb generated its non-operating income from its direct cryptocurrency investments, as it is possible that the company held funds in cryptocurrencies like bitcoin and Ethereum.”
On April 17, privacy-focused cryptocurrency Verge demonstrated the largest pump in the market throughout this week, as it surged by more than 40 percent within a 12-hour period. The pump was generated by Verge’s announcement of a major partnership. Later that day, it was revealed that Verge partnered with Pornhub, the largest pornography distributor in the world, to allow users to purchase pornography with cryptocurrency.
As soon as the partnership was officialized, the price of Verge (XVG) plummeted by more than 37 percent. Initially, the price of XVG surged from 1,000 satoshis to 1,400 satoshis, as the community anticipated the finalization of the large partnership. Immediately thereafter, the price of XVG plunged from 1,400 satoshis to 888 satoshis.
Analysts recommended traders not to trade cryptocurrencies, both minor and major assets, based on rumors and partnerships because in most cases, traders suffer from large losses after trading rumors and partnerships.
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Last modified: May 20, 2020 8:52 PM UTC