Crypto markets are back up today following another foray into four figures for Bitcoin. The king of crypto did not stay there long and has bounced back over $10k again during today’s Asian trading session.
Bitcoin Back Over $10k
There appears to be a lot of buyers lurking in the mid-$9000 range as Bitcoin does not hang around there for long. From an intraday and weekly low of $9,500 BTC shot back into five figures a few hours ago as buying pressure escalated. According to Tradingview Bitcoin topped out at $10,180 where the 200 moving average lies on the one hour chart.
The 7 percent surge has added over $10 billion to total market capitalization and Bitcoin’s dominance remains above 65 percent. BTC market capitalization is back to $180 billion again. Trader and analyst, Josh Rager, commented on the buying frenzy whenever BTC drops back into four figures:
“If interested in accumulating more Bitcoin at sub $10k prices. Remember that majority won’t catch the bottom. It may be wise to consider scaling in slowly but it’s totally up to you. But it’s likely the bottom will bounce hard and most will be frontrun by big players”
https://twitter.com/Josh_Rager/status/1154072765831483392
The general consensus from the twittersphere is that in the long run it doesn’t really matter but anything below $10k is more of a psychological gain. As the consolidation continues the likelihood of a larger move becomes greater.
The last three times Bitcoin has dropped below $10k it has bounced back within a couple of hours which has kept the bears at bay.
Echo Bubble?
There has been talk of an ‘echo bubble’ theory that says the last rally was a mirror of the 2017 one and that BTC will come crashing down again in another prolonged bear market.
Analyst Alex Krüger has refuted this however stating that there is more real demand for Bitcoin this time around.
“I’ve been asked if I see bitcoin as a bubble, following the “Echo Bubble” tweet below. I do not. Fundamentals come first. There’s real demand for $BTC from HNWI, Family Offices, traders, libertarians, market makers, leveraged funds, and others.”
I've been asked if I see bitcoin as a bubble, following the "Echo Bubble" tweet below. I do not. Fundamentals come first. There's real demand for $BTC from HNWI, Family Offices, traders, libertarians, market makerts, leveraged funds, and others. https://t.co/53WWfYlnXM
— Alex Krüger (@krugermacro) July 24, 2019
It does appear that Bitcoin price has found a floor around the $10k level at the moment and yesterday’s low was higher than the previous so a pennant could be forming. This may well lead to a breakout later this week but analysts are still conflicted over its direction.
Elsewhere on crypto markets there is a lot of green as some of the altcoins are outpacing Bitcoin’s gains at the moment. Ethereum has cranked 8 percent as it approaches $225 again and EOS has surged 10 percent to recover some of its heavy losses.
Image from Shutterstock