It’s a great beginning to the last week of May 2019, as Bitcoin (BTC) makes quick moves in the early hours. The world’s cryptocurrency jumped 10% in the early hours of Monday, May 27, moving past $8800 levels. In the last 24-hours, Bitcoin has made a high of $8846, according to the daily chart on CoinMarketCap.
At the press time, Bitcoin is trading at $8686 with a market cap of $153.7 billion and trading volumes hitting nearly $29 billion. For the last one week, Bitcoin flirted mostly around $8000 levels. Today’s price surge re-instills the optimism and enthusiasm among the Bitcoin community.
Moreover, with today’s price surge, Bitcoin has given 132% returns to its investors year-to-date. Also, with today’s price surge, Bitcoin extends its dominance to over 57% in the entire cryptocurrency market. Besides the overall cryptocurrency market cap has crossed above $268 billion.
As the market sentiment around Bitcoin improves, technical analysts are eyeing for the next immediate target of $9000.
$BTC: Goodbye meme triangle, hello $9k+ targets
Some people were screaming triple top when the more obvious conclusion is retest after restest of resistance will finally lead to a break to the upside
Bitcoin could cool off, run sideways but IMO will continue to move up over $9k pic.twitter.com/GjMhVCab9W
— Josh Rager ? (@Josh_Rager) May 26, 2019
On the other hand, venture analysts expect the rally to continue in the medium to long-term. With Bitcoin’s rally above $8600 levels, Max Keiser, the host of Keiser Report, hints for a new all-time high at $28000.
There’s very little supply between here and new ATH.
$28,000 still in play. #Bitcoin
— Max Keiser, tweet poet. (@maxkeiser) May 26, 2019
Last week on May 21, global market analyst Alex Krüger emphasized that Bitcoin is facing key resistance at $8500, which it has successfully crossed today. Now the next resistance is at $1000 while the immediate support is at $7600.
Support: 7600, 7200, 6800, 6400, 6200, 6000, 5750-5500, 5000.
Resistance: 8400-8500, 10000, 11500-11750, 13000, 15000, 17400, 20000, moon.
— Alex Krüger (@krugermacro) May 21, 2019
The good thing about Bitcoin is that throughout the entire May, its trading volumes have stayed above $1 billion as per the “Real 10” volume metrics. Real 10 considers trading volumes from exchanges reporting honest figures and provided by Bitwise Asset Management.
Bitcoin: a Dead Cat Bounce?
While the Bitcoin price rally has managed to create fresh optimism among investors, some experts suggest avoiding fresh investment at this time. Motley Fool blogger Kevin Godbold calls the BTC price rally as a dead cat bounce saying that there’s no improvement in its fundamentals.
A dead cat bounce is a temporary recovery after a prolonged bear market. In a blog post on Sunday, May 26, Goldbold writes that Bitcoin price has surged over 120% year-to-date. He states that this price surge was only due to speculators who went on a buying spree after a massive crash. He says that after such a recovery, BTC is no longer a bargain.
“The buying probably caused the share price to move up. A little at first, but seeing the movement, others maybe started saying, “bitcoin’s moving” and more buying happened. And because of that, bitcoin went higher. And the higher it went, the more the momentum speculators piled in. And the more they piled in, the higher bitcoin moved.
“I think that description is the essence of what causes a dead-cat bounce. Nothing has changed in the case for or against bitcoin, but speculation happened.
“Sooner or later, the speculators will run out of fire power. and when we reach that point, bitcoin is likely to plunge again. To me, the up-move looks pretty full, so bitcoin looks riskier than ever right now, and I wouldn’t touch it with a bargepole.”
While the Bitcoin price growth to surprise investors, next speculation still hovers around it. Let us know in the comments below your views on where is Bitcoin headed from here.