The correction of Bitcoin is over as Bitcoin has completed its price consolidation above $8,000 by becoming bullish again.
After weeks of bullish growth that systemically broke out of all the levels of resistance such as $6,900, $7,000, $7,200, $7,400, and $7,600, Bitcoin finally conquered the milestone level of resistance at $8,000. However, BTC price soon slumped following a market correction in much of the previous week’s days of trading.
According to Coinmarketcap data, BTC closed the week below the $8,000 price mark. Market analysts believe that the price drop was triggered by increased selloffs as some investors feared a price pullback. Despite the technical indicators indicating that the bull run was still dominant in the short run, widespread market jitters spread bearish sentiments leading to a market drop.
Analyzing Past Week’s Price Movements
On Thursday (May 16, 2019) Bitcoin reached a 7-day high of $8,320. Bitcoin started trading at $7,201 on Sunday (May 12, 2019) and rose steadily to hit $8,039 on Tuesday (May 14, 2019). On Wednesday, and Thursday, Bitcoin price was relatively stable. However, on Friday (May 17, 2019), Bitcoin sharply dropped from $7, 917 at 3: 49 UTC to hit a low of $7,174 at 6:19 UTC.
On the rest of the Friday day of trading, Saturday, and Sunday morning, BTC price averaged at below $7,300 dashing any hopes that Bitcoin could regain its historical $20,089 price of December 17, 2017.
However, from Sunday (May 19, 2019) at 3:49 UTC, BTC started an intra-day rally and rose sharply to peak at $8,099 at 13:49 UTC.
The sharp price gain has the potential to create a bullish market sentiment that can change the behavior of whales and other investors who can then make orders for BTC pairs. This can lead to higher market momentum and consequential price gains.
The Crypto Market Is In The Green
Following the strong Bitcoin price performance on Sunday (May 12), Altcoins are also bullish where leading Cryptos such as XRP, BCH, XLM, BNB, and ETH are showing a 24-hour gain of at least 7%.
On an overall perspective, the entire Crypto market is bullish as the entire market cap has peaked on May 12th at over $250 billion.
Is Bitcoin Targeting $10,000?
Since $8,000 has been conquered, it is highly likely that BTC could establish a higher level of resistance at $8,300.
Therefore, should the momentum that saw BTC jump from $7,000 to $8,000 in a week continue, it is highly possible that the end of the next week could see BTC establishing itself around $9,000. Further, an uninterrupted bull run could take Bitcoin to over $10,000 before the end of the first half of 2019.
Nonetheless, Investors Should Be Cautious
The biggest shortcoming of trading BTC is that its price is largely controlled by whales who hold the bulk of the 17.7 million Tokens in supply. These traders can flood the market will sell orders leading to a low RSI and consequential dip in prices. On the flip side, they can also increase the demand for BTC by placing buy orders which can lead to a rally.
In the meantime, it is time to buy BTC as it is positioning itself as the currency of the future and the asset with the highest ROI-5,745.98% from Bitcoin deployment.