Bitcoin price movements during the last seven days have been buoyed by the $6,600 support while being limited below the $7,200 line, until today. Market forces have prompted the mother of all cryptocurrencies to rally towards $8,000 and test for resistance.
Bitcoin Attempts Recovery Above $8,000
It could be today that the bulls in the market take Bitcoin to higher levels, as trading in the past few hours has led the price of the cryptocurrency to have a go on the $8,000 mark. According to data from Hong Kong-based cryptocurrency exchange Bitfinex, Bitcoin gained over 15% in value as it went as high as $8,039.
Technically, the 100-day simple moving average continues to cross above the 200-day moving average, which comes as a bullish signal for traders. Additionally, the stochastic and RSI indicators have also supported the view that a bullish momentum would be on the cards. Overbought levels on both oscillators suggest that bulls will take a breath before a new run to tackle the $8,000 level.
With trading volumes subdued below $5 billion (24 hours) throughout the last seven days, the market finally recovered its energy today and volumes jumped above $8 billion (24 hours) after the first test of the $8,000 line in April.
The market movement may be drawing some support from current geopolitical tensions between the United States and Russia amid a potential intervention in Syria. As U.S. President doubles down his rhetoric, investors become hesitant to put their capital on the dollar or on higher-yielding assets.
Adding to geopolitical concerns, institutional money may be entering the cryptocurrency market as it has been reported that top corporate investment leaders such as the Rockefeller Group, the Rothschild family, and George Soros are flocking towards what was once called as “a fraud” by J.P. Morgan Chase CEO Jamie Dimon.
As the cryptocurrency market matures in 2018, analysts predict there will be a surge in institutional demand, which could drive prices to new highs. Governments and central banks are producing more regulatory clarity and removing uncertainty about the asset as an investment, means of payment, and technology. Institutional capital is moving in and likely to take over a large share of the market.
The price of Bitcoin is currently sitting at $7,660, with gains of close to 11% in the last 24 hours. The bullish movement was felt across the whole cryptocurrency market, with Ethereum and Ripple with gains over 10% as well. The biggest winners in the top 20 by market cap are the EOS (+28%) and Cardano (+21%).
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