Bitcoin’s fortunes appear to be fading, at least in the short term, with it seemingly trapped in an endless bear market. The flagship crypto has consistently dashed investors’ hopes by failing to regain any of the bullish momentum bitcoin once enjoyed. But bitcoin could be about to hit bottom and even turn a corner, according to technical data.
Simons Peters, a Bitcoin analyst at eToro, is among the majority of those who believe bitcoin remains stuck in a bear market.
Speaking to Express.co.uk Mr Peters said: “With Bitcoin, whilst we have seen momentum to the upside this week, the price has failed to break through $4200.
“This has become a significant level of resistance for Bitcoin and until we see a convincing breach of this level and a higher low being formed I am reluctant to say we are out of the bear market.”
Although bitcoin last week witnessed a push through the psychological $4000 resistance, this minor bull run swiftly ended by last weekend.
Bitcoin is currently trading at £2,856 ($3,800) at 9.00pm GMT, according to CoinDesk.com data – a level it sat at for the duration of the week.
Bitcoin is currently trading at £2,856 ($3,800) at 9.00pm GMT, according to CoinDesk.com data – a level it sat at for the duration of the week.
Technical data, however, indicates a new bull run could still begin this year.
This is because bitcoin’s 50-week moving average dropping below the 100-week moving average for the first time since April 2015.
A moving average is a simple technical analysis tool that smooths out price data to create a constantly updated average price.
And these moving averages are useful in helping cut down the amount of “noise” on a price chart, achieving a clearer picture in the process.
Bitcoin advocates have been out in force recently, in an attempt to talk-up crypto markets developments.
Jesse Lund, the VP of blockchain and digital currencies for IBM, last week revealed he expects bitcoin to hit $5,000 this year, and eventually top $1million.
Mr Lund said: ”I see maybe $5,000 at the end of the year, but I see a way higher upward trajectory.”
And Spencer Bogart, a Blockchain Capital partner, revealed how he thinks now is “a good time to buy” bitcoin, although stopped short at describing the status quo as the market’s absolute bottom.
Bogart said: “I think there’s a strong case to be made that bitcoin is the most compelling asset in the world right now.
“The bitcoin market is a tinder box right now and anything could set off the next bull run.”
And adding to the background noise is Zhao Dong, a Chinese billionaire and a major bitcoin trader.
Zhao Dong is reported as saying now is the time to stock up on the flagship cryptocurrency.
And the trio are far from alone in praising bitcoin technology.
The bitcoin market has also been enlivened by comments from two of the most closely-watched figures in the tech world: Tesla’s chief exec Elon Musk and Twitter’s CEO Jack Dorsey.