Bitcoin Back In The $8000 Region, But is it Sustainable?
It’s been a rough few months for Bitcoin, as traders and HODLers alike have watched the price of Bitcoin plummet from its all time high of $20k back in January to a low of $6k. Since then Bitcoin has danced between $6500 and $10k but ultimately appearing to follow a downward trend.
On Thursday however we saw a major pump of the value of Bitcoin, the price soared from $6800 to $ $8000 in a single hour for no apparent reason, the price soon dropped back to the $7500 area before climbing up towards $8000 again, which is where is still dances about at the time of writing this article.
What Was The Cause?
Many news outlets will attribute this latest Bitcoin rise to some form of news, however they are all wrong. There actually appears to be no major news that would cause this latest pump, the volume is still relatively low and Google searches are still down.
Are We Heading To The Moon?
Well fundamentally nothing has changed with Bitcoin, Volume is still low, there is no major positive news regarding Bitcoin and Google Searches are down – so Bitcoin reaching a new all time high in the near future seems unlikely, though as ever is the case with this beast – we cannot rule it out.
That said, when we say ‘near future’ in terms of Cryptocurrency valuations we are referring to ‘days and weeks’ rather than ‘weeks and months’. Everything can change in an instant. We saw this back in December when google searches for Bitcoin shot up astronomically overnight from its usual trendline of where it sits once again now:
These recent few months have been nothing more than another entry for the Mainstream media to add to Bitcoins ever growing obituary The value of Bitcoin is still up over %700 in 12 months and has outperformed just about every other tradable asset. A major correction is normal, healthy and fortunately almost over.
If bitcoin does not hold at this $8000 range and drops to below $6900 we maybe in trouble as most would agree the next major support levels are down around $3000, however, if we can push higher towards $9000 it is possible we will break this bearish downward trend.
This article first appeared on our website
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