Though Bitcoin is still far from its peak at near $20K level, the cryptocurrency was able to jump by 7% overnight. Bitcoin jumped from $9,766 to $10,500 in just 24 hours. And not only that, it seems that Bitcoin is improving its dominance in the crypto market. It now holds 70% of the entire crypto market.
Before the rally, there were crypto analysts such as Josh Rager who suggested that Bitcoin could actually hit below $9,000 once the support level at $9,300 has been breached. Now, Bitcoin has surpassed the psychological level of $10,000, there is a chance that we could be seeing an increase in its trading volume.
Can Altcoins Survive vs. Bitcoin?
It is anticipated that Bitcoin could even reach $11,500 according to technical analysts given that Bitcoin has reached the psychological $10K level. Major altcoins such as Bitcoin Cash and Ethereum experienced a 4-6% increase as Bitcoin jumped by 7%. However, for most altcoins, it is a different story. Most altcoins lost 50-80%.
Why is Bitcoin on the Rise?
There are a lot of factors that could contribute to Bitcoin’s recent jump. On, you have the launch of Bakkt which offers the first futures contracts for Bitcoin. Bakkt is going to start accepting the deposits by September 6. However, the platform itself is going to launch trading by September 23.
Plus, you also have the block reward halving by 2020. This could mean a decrease in the supply of Bitcoin which could increase the price of the cryptocurrency.
The CEO of Galaxy Digital Michael Novogratz thinks that this is already a consolidation phase for Bitcoin. He said that “Bitcoin started the year at $3,800, traded at $3,500 and now it’s at $10,200 and so it’s up 200% already”. He also added that “It has had a huge run, and so I think this is a bit of consolidation”
Bitcoin Bull Run De javu?
Is this a repeat of the 2017 bull run for Bitcoin? This time around though, things have changed a bit for the crypto industry. For instance, you have the involvement of institutional investors. And also, unlike before wherein ICOs contributed to the bull run which was then called “crypto mania”, things are a bit different considering the regulatory changes applied since the start of 2018. It was also these regulatory changes that have caused Bitcoin to drop by more than 80% from its all-time high.
According to the Wyckoff theory, BTC was accumulated during the bearish season. And it was because of this that caused a parabolic run. However, the rally stalled since it has entered a correction phase. It supports the Novogratz’s interpretation that we are now in the reaccumulation phase.
It was also the same trend that happened during 2016. It was the year before the 2017 crypto bull run. There are those who believe that Bitcoin is simply waiting for the next bull run. If this is the case, then it is a de javu of 2016.
Is Bitcoin expected to go up and surpass its all-time high in 2017? Or is it too early to tell if it’s another bull run in the horizon?