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Is the Latest Bitcoin Spike a Fluke? Analysts Don’t Think So



As bitcoin continues to sally forth, the currency is garnering all kinds of attention from industry and media analysts alike.

Will Bitcoin Continue to Rise, or Is Another Drop Coming?

Many are wondering if this is all a fluke. After all, it wouldn’t be the first time that bitcoin has surged to new heights only to disappoint us somewhere down the line. Remember in December of 2017? The currency hit its all-time high of nearly $20,000 and jumped into new territory, taking the entire crypto space with it.

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Sadly, this good fortune didn’t last. 2018 is widely considered one of the worst years for bitcoin, with the currency reaching new lows by the time Thanksgiving rolled in. Trading for about $3,500 during that time, the currency shed approximately 70 percent of its value and was arguably in one of its worst states. Many were certain that things had finally hit their lowest points, and that BTC wasn’t likely to recover.

Some, however, don’t believe this behavior will occur again. Several analysts have come forward to explain that bitcoin has already undergone a period of “bottoming out,” and that the current rallies are not something to be worried about.

Christopher Brookings, founder and CIO of Valiendero Digital Assets, explains:

The sharp move is the confluence of uptick in fundamentals… I think the bottom is firmly in.

He was also quick to state that the currency was likely “very oversold” at the end of 2019, which is arguably why the currency did so poorly in the year’s final two months.

Joe DiPasquale – the CEO of cryptocurrency hedge fund manager Bit Bull Capital – echoed this sentiment, saying:

First, the digital currency appreciated during the U.S.-Iran tensions, going from $6,860 to $8,460. This move took it above our previously cited support level at $7,700. Then, new developments in Craig Wright’s legal battle fueled speculations regarding him being Satoshi Nakamoto (and potentially having control over the billions worth of initially mined bitcoins), pushing up bitcoin SV, and by association, bitcoin cash and bitcoin.

Trying to Make Up for Yesteryear’s Losses

Brookins further commented that he believes bitcoin will work to try and regain all its previous losses from the final months of 2019. He commented:

Persistent buying momentum (it looks like RSI will push towards 80) has allowed bitcoin to retest/break key resistance at $8,442 and is currently completing a Kumo breakout. If that holds, it will confirm a resumption of the bull trend… In classic crypto form, bitcoin is trying to regain all its quarter four loses in two weeks, so it’s overbought right now, but I wouldn’t stand in front of the train for a reversal just yet. So long as $8,442 (now support) holds after RSI decompresses, the bulls are in control again.

At the time of writing, bitcoin is trading for just over $8,740.

Tags: bitcoin, bitcoin price, Christopher Bookins



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