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Maintaining $5,500 Could Mean Bullish for Bitcoin

bitcoin

One of the reasons for Bitcoin’s bullish movement recently is Facebook. Facebook has now moved towards the crypto industry with its “Project Libra”. The goal of this project is to have a native stablecoin that can be used for transactions within the Facebook ecosystem.

Given the billions of Facebook users, this could potentially change how people use blockchain technology. Facebook is currently talking with the likes of Visa, Mastercard, First Data, and other merchants. If done successfully, it could tap around 33% of the world’s entire population given the number of people who log on to the social networking platform.

After the report was made, Bitcoin was able to jump by 6.59% and was trading at $5,814. In addition to this, other major altcoins also spiked up including Ethereum that had a 4.64% jump.

Could Facebook Maintain its Position?

Now, there are questions whether or not Bitcoin could maintain its position. Murad Mahmudov who is the founding partner at Adaptive Capital thinks he is “quite bullish” on Bitcoin if it holds the $5,500 region.

He mentioned on Twitter the 20 reasons why he thinks that there will be a Bitcoin “megamonsoon” in case that it is able to hold $5,500.

There are a number of signs that would indicate that things are looking Bullish for Bitcoin. One, you have the ascending channel. In addition to this, you also have the Relative Strength Index (RSI) that looks bullish on Bitcoin.

Trump vs. China

Also, you have the Dow futures plunging by 500 points all because of Donald Trump’s tweet saying that he plans to double tariffs on Chinese goods. From 10%, Trump wants to impose a 25% tariff and that could jeopardize a trade deal. This is an effort to protect American workers.

Crypto trader Alex Kruger mentioned that “The narrative that crypto follows excess liquidity and thus stock prices has been gathering steam among traders in the last few months. Narratives can be self-fulfilling. It will be interesting to see how crypto reacts to the ongoing stock crash, triggered by this Trump tweet”.

As for the movement of Bitcoin, Kruger mentioned that “The narrative in question is that Bitcoin follows stocks. Gold generally goes up when markets panic. Generally, not always”.

Bitcoin is Recovering?

Bitcoin had a brutal 2018. After reaching near $20K level in mid-December of 2017, Bitcoin dropped by more than 80%. But according to the recent Wall Street Journal report, Bitcoin gave holders better returns than assets such as crude oil and S&P 500.

Despite the Tether-Bitfinext controversy, it seems that Bitcoin is on its way towards recovery. Many are now observing whether or not Bitcoin is going to reach $6,000 soon.

Could it be possible that we are going to see Bitcoin reach a new all-time high this year? If you are going to ask someone like Tom Lee, he thinks that there is a possibility that this could soon happen. One of the reasons why Bitcoin and the rest of the crypto market dropped after 2017 was due to the lack of regulatory clarity. Could we be seeing regulatory clarity soon? Could there be more laws that would address the changing needs of the industry?

 

Janneke Eriksen

Janneke is a writing ninja and has vast experience in journalism, specifically in the crypto space. As a blockchain believer and avid Bitcoin fan, she’s incredibly excited to share to our readers the latest news around so they are always updated wherever they are.

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