During the past week, Bitcoin continued its rally on the back of a strong bullish sentiment, rising approximately $1,000 in the course of seven days. As we predicted in our last update, once Bitcoin’s price broke $7,700, it set on a new ascending path. And once again, this path was supported by a significantly increased interest in trading the cryptocurrency, as signaled by our market stats.
As reported by Forbes, with the latest price increase the cryptocurrency has achieved a growth of 44% over its June levels, when Bitcoin hit the lowest point since the start of the year. Namely, back in June 2018 Bitcoin traded for as low as $5,758.43 – a range that was drastically different from its all-time highs from December 2017. According to analysts, this is a very bullish sign for the market.
Talking to Forbes magazine was eToro analyst Matthew Newton, who stated that since Bitcoin broke its main resistance barriers, it signaled that there’s “real strength” in the latest price increase. Jon Pearlstone of Cryptopatterns also shares this opinion, saying that the break over $8,000 without a reversal shows that the market is indeed quite bullish.
Buyers In Charge of Market
The buying momentum over the past week has driven Bitcoin’s price to grow faster than it has for a while now. The lowest point during the past seven days was reached in the early morning on Saturday, when Bitcoin dipped down to a price of $7,267.89. But since the start of the week, the world’s largest cryptocurrency was able to rise to a significantly higher level and reach a new high point of $8,424.27 early today. This price increase wouldn’t have been possible without the doubled 24-hour trading volume, which now reached $6.9 billion. The market cap has also risen over the past few days, sitting currently at $142 billion.
As suggested by our technical analysis, the bullish pressure isn’t over yet, with 7 out of 12 oscillators and 8 out of 12 indicators still sending buying signals. The SMA100 is safely above the SMA 200 on this time-frame, showing that there is less resistance to the upside. If Bitcoin holds over $8,200, it could test the dynamic SMA 200 of $8,500 next, from where it can shoot even further up. If sellers take the lead, however, we could see an expected price correction. In any case, as long as the price stays over $7,800, it could impact the market sentiment positively, which in turn could help Bitcoin continue to grow.
A Price Dip Expected?
With a sudden price increase, most Bitcoin investors are wary of any pullbacks as historically speaking the cryptocurrency has conformed to such trends before. According to CNBC, who spoke to a number of technical analysts that specialize in the coin, such beliefs are well justified considering Bitcoin’s past behavior.
Founder of Newton Advisor, Mark Newton, was one of the analysts who spoke to the media portal and he says that now it’s not the time to become “too greedy”. As recent cycles indicate, the latest price push doesn’t mean that Bitcoin will revert back to its former highs right after climbing over $8,000. Fundstrat analysts also agreed with this view while talking with CNBC and said that a pullback is hinted at by the overbought short-term signals, but also that any correction should be “shallow”.
According to Newton’s predictions, the dip in price is expected to be around 5-10% before Bitcoin rises again. He predicts a pullback during August, saying that past trends suggest that “you wanted to be invested in November and December”.