Bitcoin prices have been trading north of $ 18,000 since late last month, fluctuating above this level as the cryptocurrency benefits from multiple bullish factors.
The digital currency has remained above $ 18,000 since Nov. 30, according to CoinDesk data.
Several analysts commented on these price movements, offering a perspective on whether the cryptocurrency establishes support above this price level.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
“Bitcoin currently aggregates between $ 18,000 and $ 19,000,” said Joe DiPasquale, CEO of BitBull Capital’s cryptocurrency hedge fund manager.
“We are also witnessing an ascending triangle pattern on the chart, and a cut out of $ 20,000 this month is a possibility,” he added.
“On the downside, decent support is in the $ 18,500 to $ 18,000 zone,” DiPasquale noted.
Mark Warner, head of trading for London-based financial services firm BCB Group, also gave his two cents.
“Technically Bitcoin forms a decision triangle around the $ 19,000 level, with a bearish divergence on the RSI (Relative Strength Index),” he said.
“This usually shows that the price action is cooling.”
“That said, the bears haven’t shown enough strength to go below $ 18,000, so we’re expecting another $ 20,000 visit this week,” added Warner.
Kiana Danial, CEO of Invest Diva, also provided input, highlighting a possible price.
“Bitcoin seems to be in the process of forming a double-top bearish reversal chart pattern,” he said.
“Due to its volatility, I wouldn’t be surprised to see a downside before we see long-term gains, especially as the bullish hype seems to be dying out.”
“Based on Fibonacci score levels, the key support levels are $ 17,600, $ 16,400, and $ 15,000,” said Danial.
Bullish Market Factors
While the above experts provided technical analysis, other market observers offered some additional thoughts about what drives bitcoin’s price action.
Jeff Dorman, chief investment officer of Arca’s asset manager, spoke to investor sentiment, stating:
“Everywhere you look, markets look extended, with little fear.”
“Equity fear and greed indices and Bitcoin are flashing alerts,” he added.
“While the lack of fear itself should be more frightening, the reality is that governments around the world” “does everything it can to force investors into risky assets, and it works.”
Ray Youssef, CEO of Paxful, spoke to “the growing momentum of the digital asset.”
“Bitcoin is very close to going mainstream and is becoming a viable alternative to stocks, commodities and bonds,” he said.
“We have seen an influx of attention to the digital asset from retail investors, institutional investors, and many large publicly-traded companies solidifying trust in Bitcoin and more so its use cases,” said Youssef.
“Momentum has proven to be a powerful driver, attributable to a number of factors including globally volatile economic situations, the pandemic, and a better understanding of the functions of crypto.”
“All this and more will allow Bitcoin to become the world’s new currency.”
Disclosure: I own a small amount of bitcoin, bitcoin cash, litecoin, ether and EOS.