The bulls are back and they’re driving the world’s most popular cryptocurrency towards a new 2019 price record and closer to its all-time highs of 2017. Thanks to positive news from the industry and the rise of interest in crypto trading over the past month, Bitcoin has managed to climb over $9,000, dragging other popular coins along with it. And according to current trading trends, the price increases don’t seem like they will be stopping soon.
Noted Bitcoin bull Tom Lee from Fundstrat Global Advisors once again predicted head-spinning highs for the cryptocurrency in a CNBC interview, saying that the coin can “easily” surpass its previous record. Since Bitcoin climbed over $9,000, Lee sees the coin going over $20,000 and even $40,000 if its user base grows. As he notes, Bitcoin is now “deep into a bull market” with its aims towards new peaks, especially since Facebook decided to step into the crypto space.
According to Lee, Facebook’s plans are a total validation that mainstream businesses are now shifting their focus towards cryptocurrencies – a validation that he sees will drive even more interest in crypto.
Buyers Still Hold Market
Bitcoin’s price has grown significantly since our previous update a week ago, rising from its lowest point of $8,140.44 last Thursday to hit a new peak of $9,390.70 on Tuesday yesterday. Once again, the price growth correlated to a rise in 24-h trading volume, which at the time of Bitcoin’s peak went over $22 billion. Currently, the volume is at $17.2 billion and rising rapidly, hinting at a new price correction, while the market cap is at $162.7 billion.
Our technical analysis shows that the market is still bullish, with 7 out of 12 technical indicators and 11 of 12 moving averages being pro-buy. The SMA 100 has climbed safely over the SMA 200, signaling there is less resistance to the upward course. Similar signals are coming in from the short-term charts as well, showing us that bulls are dominating the scene.
If buyers keep pushing and the price breaks $9,300, we expect a further rise towards a new support level. But if the trends change, a test of the $8,900 support is expected. Like always, stay on the lookout for any notable price changes, especially throughout the weekend.
Facebook to Finally Release Own Cryptocurrency
One of the biggest news from the cryptocurrency space this week was the release of the whitepaper for Facebook’s new cryptocurrency Libra. The social media titan revealed plans a few days back to publish the whitepaper this Tuesday, raising large global interest in the product and helping Bitcoin’s price to climb further.
According to Forbes magazine, Libra has managed to get backing from big companies like Spotify, Uber, and payment processor Visa, which is why some see it as a mainstream rival for Bitcoin. However, while the coin may directly compete with BTC, many industry experts see it as a good endorsement for the technology driving the cryptocurrency space and indirectly Bitcoin itself.
While Twitter is standing behind Bitcoin, Facebook will be turning to its Libra coin to enable payments across some of its services. Reportedly, Libra will be a sort of a stable coin that is pegged to other major currencies like the US dollar. Once integrated, it will allow easy and secure cross-border payments through WhatsApp, Instagram, and Facebook Messenger.
To address concerns that the coin will end up being centralized, the social media company will reportedly leave control of it to an “independent foundation”.