- Bitcoin (BTC) parabolic, adds 41.5 percent
- Strong Bitcoin fundamentals rewinding last year’s losses
The deteriorating global economy, prospect of central banks intervening, and the entry of whales through institutional investment could explain the parabolic rise of Bitcoin’s prices. At over $12,800, BTC is up 41.5 percent in the last week and poised to register more gains.
Bitcoin Price Analysis
Fundamentals
Visibly, Bitcoin’s rally is stretching superlatives. Analysts say the recent price eruption has been dizzying. Well, true to their observations, this surge has everyone talking about Bitcoin. If anything, this is the necessary fuel for further price spikes as retail traders angle for gains. Spectacular as it is, explanations remain banal.
For whatever reasons, there are no concrete illustrations. Presently, speculation is rife that there are whales behind this price roll. Because of this superb jump, that could be one of the many reasons. After all, institutional grade investors are flocking in en masse.
By readjusting their portfolios and slotting in Bitcoin and other promising crypto assets, there is support of prices. Then again, global economic doldrums have traditional investors jittery. As observed, Bitcoin and gold prices are printing new highs and unexpectedly, fluctuating in synchrony.
If anything, this shows that investors have choices. Even so, Bitcoin, given their history of enormous volatility, is visible considering large price swings of the last few days. With a market cap exceeding 225 billion and trading around Feb 2018 highs, the sentiment is quickly shifting.
Since investors are optimistic, there is a feeling of “Fear of Missing Out” forcing speculators and holders to ramp up, even if buying bits of this scarce digital gold.
Candlestick Arrangement
At the time of writing, Bitcoin is trading 41.48 percent higher from last week’s close. Retesting $13,000, bulls are back with a vengeance. From this, there is a window for traders to buy the dips since BTC is within a bullish breakout pattern following the obliteration of $10,000.
At this pace, odds are bulls will blast past $15,000 satiating investors who held through last year’s biting winter. Although prices may cool off in a normal retracement from the upper Bollinger Band (BB), that will form the springboard for further price spikes.
If prices drop, allowing re-entry, possible supports will be at $9,500 and $11,200. From there, ideal targets will be at $15,000 and later $18,000.
Technical Indicators
Bitcoin’s price expansion is parabolic. Marking bulls are swelling trading volumes in the last week following the break out above $10,000.
Chart courtesy of Trading View. Image Courtesy of Shutterstock