By
Bena Ilyas
April 29th, 2024
After a week span of bearish market conditions, the number one cryptocurrency Bitcoin is back on track and currently trading above $11,000 price level.
For the first time after a sporadic period of a week’s wavelike downturn, Bitcoin price has been observed to be gaining traction and is well on its track to reaching its purported $50,000 come end of the year. According to the charts provisioned by CoinMarketCap, Bitcoin has undergone a 12% boom over a 24 hour span and has hit $11,575 price level.
This nascent Bitcoin value recovery has laid waste to such claims by top financial blogging platform, Forbes as well as American Economist and Bitcoin Critic – Nouriel Roubini, who asserted that the ‘Bitcoin bubble’ had been popped. The latter stated in a tweet:
Indeed Bitcoin is now down below 10k. Has lost a third of its value in less than a week. Still a long way to less than zero as its true value is negative not zero given its toxic externalities! It will get to zero in due time. https://t.co/Ek87DvRq6t
— Nouriel Roubini (@Nouriel) July 2, 2019
Earlier today, BTC price, however, skyrocketed to $10,700, as expert predictions depict the gains reached $11,575 after breaking out of the $9,600 threshold. Bitcoin has established a base value around $9,600 and with this $2,000 resuscitation, indications are that there have been recent demands for the number one digital currency.
Rising to an overhead of $13,800 during the end of June, the price of Bitcoin however, plunged to an amount within the range of $9,600 afterwards. But at the wake of this contemporary price upsurge, it turns out that the bullish trend would only set in when the bearish average lower-highs of $11,000 is invalidated with a move above $12,500. Thereof, once the price breakout occurs it is believed to be accompanied by a price surge above the current high of $13,800.
Certainly, this sudden breakout was not backed by an increase in the daily trading volume. As CoinMarketCap indicates, the overall Bitcoin daily trading volume dropped from its $91 billion benchmark as of yesterday to its current value of $86 billion.
The total market capitalization, nonetheless, increased from $303 billion to $324 billion in just 24 hours. Although there are some crypto analysts who would arguably ascertain that Bitcoin has reached its breaking point hence an apex where it starts to drop.
With respect to the Bitcoin’s all-year high of $13,800, one would expect that this price surge was as a result of more gains in the purchasing power of the cryptocurrency. But the reverse seems to be the case since the recent upsurge triggered more sell orders than buy orders.
Additionally, following the 14-week span record of the Relative Strength Index (RSI). Such short-term price upswing could be detrimental to investors who are swift in making trading decisions with regards to flipping.
On this note, it is pertinent to state that a long term and healthy bullish trend can only be confirmed when the price breaks above $12,500.