Bitcoin Holds Above $4000, Prepares for the Next Rally

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by Bhushan Akolkar · 3 min read
Bitcoin Holds Above $4000, Prepares for the Next Rally
Photo: Simple FX / Flickr

Over the weekend, Bitcoin has moved past its crucial resistance of $4000 showing up signs of recovery after a long phase of consolidation.

Over the last weekend, the crypto market and Bitcoin showed a healthy northward movement. Over the last three days, the overall cryptocurrency market cap grew by $5 billion. Bitcoin (BTC) too was able to surge past the $4000 benchmark and is successfully holding up to those levels.

At the press time, the overall cryptocurrency market cap stands at $138 billion. Also, Bitcoin is trading at a price of $4018 with a market cap of $70.7 billion. Today, the market is showing minor signs of correction with the top ten cryptocurrencies correcting as little between 1-3%.

Among the top ten, only Bitcoin Cash (BCH) is showing a good movement with over 5% gains. At the press time, Bitcoin Cash is trading at $160.21 with a market cap of $2.8 billion.

Over the last three months, the cryptocurrency market has shown major consolidation. Bitcoin too has been trading close to $4000 levels as several analysts have been predicting the resurgence of the world’s largest cryptocurrency. Also, the uncertainty in crypto regulations has kept many wondering as to in which direction the market will swing.

Bitcoin Bull Run By August 2019

Fundstrat analyst and Bitcoin bull Tom Lee continues to remain for Bitcoin. Lee believes that Bitcoin has almost reached its bottom and is set for the next up-move. However, Lee’s predictions have fallen flat in the past with the crypto market showing notorious price movements.

But Lee continues his strong belief that there are no further major headwinds and roadblocks for Bitcoin. Moreover, he remains optimistic that the crypto market shall witness “big moves” in the coming few months. Lee said:

“I think 2019 is a year about repair. We have a risk-on rally in global markets that’s positive for bitcoin; it was a headwind last year, and the dollar isn’t surging like it was last year. That’s a headwind that’s gone away.”

Lee points to the growing use of Bitcoin in economically weak countries. Furthermore, he also remains bullish on the participation of big giants like JP Morgan and Facebook within the crypto market. He said:

“The real story is the fundamental one, that bitcoin’s becoming quite useful. We’ve seen the launch of digital currencies by not only J.P. Morgan and Mizuho Bank, but also Facebook and some social media companies gearing up. And, of course, in places like Venezuela, where bitcoin has become very large and widely used, turmoil is causing adoption growth, so I think these things are really setting us up for a strong year.”

Participation by Financial Giants

Despite the ailing crypto market, financial institutions like Fidelity and ICE continue to hold up with their crypto plans. Last week, Fidelity Digital Assets launched its crypto trading and custody services for institutional players. Although the roll-out is only for limited customers at the moment, Fidelity will open up its services fully by September 2019.

The launch of ICE’s Bakkt Platform is also lined-up in the coming months. The Bakkt platform aims to bring cryptocurrencies to the mainstream for daily spending, besides its trading and custody solutions.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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