Bitcoin, which has just had its best trading day since its epic December 2017 bull run, is now fighting to hold on to those gains as traders and investors weigh whether the $5,000 per bitcoin price is a ceiling or a floor.
The bitcoin price added 20% on Tuesday this week after prices began climbing the day before and coming off the back of a strong month in March. Just a couple of months ago bitcoin was flirting with $3,000 per bitcoin.
Now, one bullish Wall Street researcher and advisor is predicting the recent bitcoin price rally is just the beginning, forecasting bitcoin could be about to hit a near 200% surge—making each bitcoin worth a staggering $13,500.
The New York-based Fundstrat Global Advisors found that bitcoin closed above its 200-day moving average for the first time in more than a year on Tuesday, thanks to its huge price rally.
“Based on bitcoin’s trading history, a move above the 200-day moving average for bitcoin is meaningful statistically,” Fundstrat Global Advisors researchers wrote in a note to clients. “When bitcoin is above its 200-day moving average its win-ratio is 80% compared to a mere 36% when it is below its 200-day.”
The bitcoin price has been on a downward trend since it peaked in late 2017, dragging the wider cryptocurrency market with it and wiping billions from the value of major digital coins—some of which have lost nearly 100% of their value.
Researchers found bitcoin passed a key data milestone on Tuesday. FUNDSTRAT GLOBAL ADVISORS
Since Fundstrat released its report, the bitcoin price has moved higher again, ticking up from $4,620 to around $5,000—signalling that rally to $13,500, a price not seen since January 2018 may have already begun.
“Six-month forward returns average 193% compared to a measly 10% when below its 200-day moving average—hence, being above the 200-day moving average is a big deal,” the analysts said.
Though the bitcoin price has been trading flat for a number of months now, bold bitcoin bulls have continued to talk up bitcoin and cryptocurrency prospects, with the founder and chief executive of crypto asset manager Galaxy Digital Mike Novogratz saying the next move bitcoin makes will be “higher.”
Bitcoin investors and traders are considering whether this is the end of, or the beginning of, the bitcoin price rally. COINDESK
Novogratz added his voice to other bitcoin and crypto wealthy, including billionaire Binance chief executive Changpeng Zhao, EOS co-founder and BlockOne CEO Brendan Blumer, and the billionaire Winklevoss twins of Facebook-founding fame, who went on to create the U.S. Gemini crypto exchange, who have said they still have strong faith in bitcoin and crypto despite the downturn—and are betting prices will move higher.
Tesla founder and chief executive Elon Musk took the bitcoin and cryptocurrency world by storm earlier this week when he revealed via Twitter that his favorite cryptocurrency isn’t bitcoin, despite lavishing praise on bitcoin previously.
Author: Billy Bambrough