The price of the leading cryptocurrency Bitcoin [BTC] has gained significantly this week, as the dominant cryptocurrency traded above the $11,000 USD for the very first time since march last year.
Bitcoin [BTC] Is Sky-Rocketing
Recently on 22nd June, the traders bid the price of Bitcoin [BTC] up to ‘$11,200 USD‘ on the renowned cryptocurrency exchange Coinbase. This move further pushed the overall growth up by over 13% for the day, launching its month-to-date gains higher than ‘30%‘. This week, conjointly saw bitcoin’s “real 10” volume, that eliminates suspicious trades, swell to ‘$2.58 Bln‘.
Following the ongoing uptrend move, Bitcoin [BTC] is presently trading just 45% below its incomparable all time high price near to $20,000 USD, earlier in 2017. Moreover, the cryptocurrency has recovered by about 260% from its 2018 low of just around $3,120 USD, including this year’s return of over ‘200%‘.
What Is Actually Pushing The Price So Swiftly?
The price of Bitcoin started its uptrend climb earlier this week on Wednesday shortly after the Federal Reserve declared its plans to reduce the interest rates later in the month of July . As reported earlier, the Fed’s move left the USD in a very weaker spot, causing the benchmark S&P 500 Index and particularly the haven asset higher within the returning sessions.
While several cryptocurrency analysts ‘speculate‘ that investors are using Bitcoin as an another hedge, because of the uncertainty over a ‘trade war‘ dispute ongoing in-between the U.S and China. Grayscale Investments expressed in its new report that the continued tensions between the 2 economic superpowers left investors in China stranded with a weaker Chinese Yuan. Therefore in response, investors have allegedly started hedging their capital into Bitcoin. The report further adds as:
“While it would be still very early in Bitcoin’s life cycle as an investable asset, we’ve known evidences supporting the notion that it can serve as a hedge within the international economic crisis, significantly those that lead to the future currency devaluations.”
An another part of bitcoin’s optimistic sentiment conjointly came after the launch of Facebook’s crypto-currency project named ‘Libra’. Jasper Lawler of London Capital Group in a recent interview said that the Facebook token would act as a passage to the ‘cryptocurrency‘ marketplace for its existing 2 Bln users. The head of analysis added:
“Libra will expose around 2 Bln Facebook users to the world of crypto-currencies. Because its large network of over 2 Bln users, Facebook upcoming product can actually make a difference. Libra can breed familiarity of cryptos to a way wider audiences. 2 billion individuals will now be far more open to Bitcoin and other alternative altcoins.”
Possibilities Of Bitcoin Price Reversal
BTC’s latest push to the upper side has brought it nearer to the wedge breaking space.
There is a major possibility of a reversal once bitcoin tests the $11,200 USD to $11,800 USD price mark, the top of the falling wedge is represented in red, in line with the daily RSI indicator, that actually seems to be overbought.
A pullback, therefore, might even push Bitcoin [BTC] towards the support area above $9,948 USD. On the other hand, a break higher than the $11,200 USD -$11,800 USD benchmark might have BTC test $12,970 USD as interim upside target.