Bitcoin (BTC) has been able to continue maintaining stability in the lower-$5,000 region after experiencing some large and overwhelmingly positive volatility over the past couple of weeks. This price action has allowed most major cryptocurrencies to see major price gains that harken back to the massive gains seen in late-2017, with many cryptos surging 50% or more.
Although this type of positive price action has typically been preceded by large retracements, one analyst believes that Bitcoin has further room to climb, which means that most cryptos may be able to continue recovering.
Bitcoin (BTC) Stable Above $5,200
At the time of writing, Bitcoin is trading up marginally at its current price of $5,230 and is only down slightly from its daily highs of $5,300.
While looking back towards Bitcoin’s November drop that sent it from over $6,000 to the low-$3,000 region, BTC is still well below this price level, which may prove to be the point at which BTC faces strong resistance that requires significant buying pressure to push it above.
DonAlt, a popular cryptocurrency trader on Twitter, spoke about Bitcoin’s current price action in a recent tweet, explaining that he does not believe BTC will retrace in the near-future and that it still has further room to climb.
“$BTC consolidated for 150 days at 6000 before breaking down. Once it did it went down more than 50% in a month. $BTC consolidated for 130 days at 4000 before breaking up. We’re currently up 25%. I don’t really see the rush to short. Even if we get rejected it’ll take a while,” he explained.
I don't really see the rush to short.
Even if we get rejected it'll take a while. pic.twitter.com/esXIvTyv1n
— DonAlt (@CryptoDonAlt) April 8, 2019
DonAlt further added in a separate tweet that he expects BTC to form a fresh trading range between roughly $4,560 and $5,690, which will likely persist until the end of April.
“And no I’m not putting out hopium. New swing positions at this price level, in general, are incredibly risky. Be it long or short. I personally think BTC will form new range to fill in the void from the 6000 breakdown. I’d be surprised to see any major moves till end of April,” he said.
And no I'm not putting out hopium.
New swing positions at this price level, in general, are incredibly risky.
Be it long or short.
I personally think BTC will form new range to fill in the void from the 6000 breakdown.
I'd be surprised to see any major moves till end of April. pic.twitter.com/qk5tigyuGu
— DonAlt (@CryptoDonAlt) April 8, 2019
Fresh Load of China FUD Doesn’t Impact the Markets
Earlier today, news broke that the Chinese government is continuing to put pressure on the cryptocurrency industry and is now looking at restricting or eliminating cryptocurrency mining.
Although this does appear to be negative on a surface level, it is important to note that this is simply one of many actions China has taken against the crypto markets in recent times – many of which have had nearly no impact on the markets.
Mati Greenspan, the senior market analyst at eToro, even believes that this revelation could be bullish for the crypto markets, as it will eliminate that cheap electricity that Chinese mining groups use to mine Bitcoin, which would be net positive for Bitcoin’s price.
“If this ban does end up happening its more likely to push BTC prices up than down. The loss of cheap Chinese electricity would raise the mining cost, which is net positive on price. It would also serve to kill the FUD that Bitcoin mining is centralized.”
If this ban does end up happening its more likely to push BTC prices up than down.
The loss of cheap Chinese electricity would raise the mining cost, which is net positive on price.
It would also serve to kill the FUD that Bitcoin mining is centralized.https://t.co/OhVh8fUaXv
— Mati Greenspan (@MatiGreenspan) April 9, 2019
As the week continues on, traders and analysts alike will likely garner more insight into where the upper and lower bounds of Bitcoin’s next trading range will exist.
Featured image from Shutterstock.
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