Six thousand dollars – that could be the key to the direction of the worlds most popular cryptocurrency.
Thats what Nigel Green, Chief Executive Officer at deVere Group thinks. In a quick email conversation with Traders Magazine, he said that Bitcoin will imminently test the crucial $6,000 price support level, building confidence on the wider cryptocurrency market. This in turn would set the stage for a potential bull run later in 2019.
The observation from Green comes as over the past 24-48 hours, the price of Bitcoin price has recorded an increase of 4.3 per cent.
In the past month, it has jumped from $3,900 to $5,630 – almost 40 per cent.
Technical analysis, including long-term indicators such as the Moving Average Convergence Divergence and the Exponential Moving Average are showing signs that Bitcoin is ready to hit the critical $6,000 level, Green said. Further bullish impetus for Bitcoin may also be provided from a so-called golden cross – which is when the 50-day moving average pushes beyond the 200-day moving average.
Green also bases his bullish sentiment on anecdotal evidence as is conversations and readings have definitely turning decidedly more bullish amongst crypto traders. Many of even the most strident bears he knows appear to be changing their tune. .
I believe we will see many retail and institutional investors who have been sitting on the sidelines now unleashing their investment in the crypto market, Green said. A new breakout of $6,000 by Bitcoin – the largest, most dominant digital currency – can be expected to fuel an accumulation period and will further boost confidence in the wider sector. Once this confidence is in place, the sky is the limit for cryptocurrencies, which are increasingly accepted by both retail and institutional investors as the future of money.
Green and deVere forecast that Bitcoin could catapult from $6000 to $7,000 in the next few months. The expected $6,000 test is, of course, is the key.
The fundamentals of Bitcoin, and cryptocurrencies more generally, are stronger than ever. Its still too early to accurately say that Bitcoin is now in bull market territory – but the evidence for this trend is increasing day by day. Once the $6,000 level is reached it will set the positive direction of travel for the rest of 2019.