Bitcoin has been speculated over the last few days that it will be reaching $6,000. Today, Bitcoin was able to hit as high as $6,388. Despite the number of problems that the crypto market encountered in the last few days, Bitcoin has slowly crawled its way up. In fact, in the last 30 days alone, Bitcoin went up by 20%.
Among the problems that could’ve affected the cryptocurrency was the Bitfinex-Tether news wherein, Bitfinex was reported to be allegedly using the dollar fund for Tether in order to cover up for their losses.
And recently, you also have the hacking incident that happened to Binance. Changpeng Zhao even mentioned that there should be “re-organizing” in the Bitcoin blockchain in order to recover the funds. In a statement, Changpeng Zhao mentioned that “The hackers used a variety of techniques, including phishing, viruses and other attacks”.
If it happened a few months ago, it may have caused Bitcoin to lose a significant amount of its value. However, despite the hacking incident, Bitcoin has continuously climbed up. Instead of going down in value because of these incidents, Bitcoin was up by 7% in the last three days.
What’s Next for Bitcoin?
So what can you expect from Bitcoin in the coming days or weeks? Is it even going to go up higher? Is there already a bull run? Or will it still fall down? To give you a perspective just how huge the jump is from the beginning of the year, Bitcoin reached below $4,000 at one point.
If you are going to ask Josh Rager who is a market analyst, he believes that Bitcoin is testing $6,427 as its short-term resistance. He mentioned that Bitcoin’s weekly RSI crossed beyond 70. This is the first time since January 1, 2018. He mentioned that Bitcoin needs a pullback.
According to him, given the projection, at least for the midterm, it seems that it is less likely that Bitcoin is going to push towards $6,400. Based on the RSI, there is a possibility that Bitcoin is headed back to $4,804 territory more or less.
But does it mean that Bitcoin is bearish? In reality, the crypto market is showing bullish signs. Fidelity Investments already announced that it is already buying and selling BTC on behalf of the institutional clients. Since the start of last year, many were waiting for institutional investors to get involved. Many believe that institutional investors getting involved in cryptocurrency can actually boost the price of Bitcoin.
Bitcoin after mid-December of 2017 had a correction of more than 80% after more than 12 months. During the time when Bitcoin was on a bearish market, many were hoping for regulatory clarity as well as the involvement of institutional investors. Until now, there is still no Bitcoin ETF. In addition to this, lawmakers are still doing their best in order to give the industry the regulatory clarity that it needs. There is a new bill that aims to clarify whether or not cryptocurrencies are commodities or securities. Today, only Bitcoin and Ethereum are considered commodities. The rest still falls in a grey area.