BTC/USD peaks at $6600 on Wednesday
The value of Bitcoin posted an impressive recovery on Wednesday, as while the price hit the $5k handle on Tuesday, bulls were quick to respond and protected the important price level on the charts. After a horrific few days (or weeks), Altcoins halted their collapse with some impressive gains. Ethereum (ETH/USD) was a notable altcoin, as it recovered strongly with almost 15% gains at its peak on the day. There wasn’t exactly a clear explanation for the rally but it did seem to be a significant bounce off the level. Many crypto enthusiasts might like to point to the rally as being linked to instability in emerging markets. While wobbles in inflation riddled fiat currencies could be a reason, it’s not possible to cite this as a definite explanation.
SwissQuote look for BTC/USD to extend rally
Now that the price is moving higher again, for all intents and purposes technical analysts are likely to start believing that the support is for real. The connotations if the high $5000s level was to give way are likely quite severe, but for now, things are looking quite hopeful. Analysts at SwissQuote believe that from here there is a hope of another push as high as $6630,
“Long positions above 6055 with targets at 6455 & 6630 in extension. Alternative scenario Below 6055 look for further downside with 5885 & 5700 as targets. Comment: The RSI is bullish and calls for further upside.”
In a report from Coindesk, the prominent news agency reported that the market cap rose more than $11 billion in just one day, an impressive amount for sure as the author writes,
“The cryptocurrency market is flashing green Wednesday following a major downturn, with the total capitalization rising more than $11 billion on a 24-hour basis.”
There is an increasing trend among crypto aficionados to talk about the market as a whole and not just Bitcoin or individual Alt-Coins. This may just be a play to get people interested in the impending ETF which is under review by the Securities Exchange Commission. Regardless of this fact, some enthusiasm has clearly returned to the marketplace,
“The signs of a turnaround emerge in the wake of a rough patch for the market, during which it hit its lowest point for 2018”
It is important that Bitcoin does not test its recent lows again since this would inevitably be pushing its luck. There will be juicy stops forming below the level, and in an illiquid market like this bears will be sure to be gunning for them if the price moves within range once more.