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Bitcoin (BTC) price has managed to rise above $7,350. Positive tendencies can be observed in traditional markets as well.
Traditional financial markets rose as well. The Euro Stoxx 600 index is currently up by 2.79%. The UK’s FTSE is up by 2.93%. The Paris CAC 40 index is up by 3.38%. The Hang Seng is up by 2.06%. The Japanese Nikkei 225 is also up by 2.01%. Positive sentiment is across the board.
Bitcoin (BTC) Price Rises Despite Bad News
These and other positive indices are coming at a time when global economies are giving negative statistics and COVID-19 is on the rampage. The market resilience has indicated a rise of optimism despite the current circumstances. Sources have said that the recent climb sends Bitcoin into buy territory. This also puts Bitcoin price in positive divergence.
According to Bitcoin analyst Willy Woo, a bottom for Bitcoin prices has formed and this could be the support for a price rally. Two indicators reportedly show this.
Firstly, the hash ribbons are going upwards. The hash ribbons are the moving averages of Bitcoins hash rates. They show the amount of computing power or hashes available in Bitcoin mining pools. An upward tick indicates that more computing power is available.
The other indicator to show this is the mining s energy ratio. This is the ratio between Bitcoins market capitalization to its energy consumption. Woo further noted that this is the first time this ratio is indicating a buy zone since the crypto bubble of 2017. It also shows how things may look like as the bitcoin halving event nears in the middle of the year.
There are still many skeptics though who believe that Bitcoin prices have entered a price malaise and a breakout is unlikely. Such people believe that there has been sufficient lag time for exponential price increases.
On the flip side, this school of thinking has been considered to be extremely flawed by some. The lack of an effective fundamental position on the matter shows the weakness of the argument.
Many Factors Are Working for Bitcoin
Bitcoin prices are more resilient now than at this same time last year. The Bitcoin halving event is also coming in a few months. The also oft-held belief that Bitcoin is a hedge in times of crisis has also generally proven to be true. The COVID-19 situation is also a factor that is spurring the adoption of cryptocurrencies across the board.
As such, barring any unforeseen catastrophic events, Bitcoin prices should rise in tandem with the factors at play. This is thinking of the majority of those in the crypto space.
For now, though, everyone in the crypto space waits with held breaths as Bitcoin prices test the $8,000, $10,000, $13,000, $17,000 and the ultimate resistance $20,000. It’s 2020, anything is possible.
As at the time of filing this report, Bitcoin (BTC) price was at $7,356.0194 (+3.81%).