Analysts Expecting Volaitlity Should Now Have it as Bitcoin Eyes $5,000 Benchmark
After being traded above $4,100 for some hours, Bitcoin seems to be gathering strength to keep growing. There are several analysts that predicted the price of Bitcoin to experience volatility in the near term, and this indeed happened. On Tuesday, Bitcoin (BTC) surpassed $5,100 in some exchanges, its highest price since November 2018.
Analyst That Predicted Volatility Were Correct
Bitcoin has been in a bear trend since January 2018 and the whole market has lost more than 80% and 90% of their price. In the last weeks, however, Bitcoin started to move upwards once again. Although with low volume, the digital asset was able to increase in price from $3,200 in December 2018 and be traded close to $4,100 a few hours ago.
Financial Survivalism, a recognized cryptocurrency trader in the crypto community, explained on Twitter on April 1st, that he was expecting volatility in the cryptocurrency market. He said that if Bitcoin is able to surpass $4,200 the next major area of resistance would be the 200 week EMA, that is currently waiting at $4,600.
Expecting volatility in crypto soon. $BTC is on a weekly green 9 while testing resistance cluster from: horizontal, trendline, & the 200 week EMA. If it makes it through $4,200 then the next major area of resistance would be the 200 day EMA which waits at $4,600. pic.twitter.com/8Dq51sZB7G
— Financial Survivalism (@Sawcruhteez) April 1, 2019
Another expert called on Twitter TraderX0X0 said that Bitcoin could pick up to $4,200 or $4,300 and then fall to start a new bull trend in the future. This also shows that there could be volatility in the market and in Bitcoin in the coming hours.
And indeed, Bitcoin experienced this predicted volatility. The digital asset moved beyond $4,200 and $4,600 and it reached $5,100 in some exchanges. Of course, later it fell down again to $4,700 but it is currently being traded above the 200 week EMA.
Bitcoin is officially out of the bear market and it is entering a new bull trend. This does not mean that Bitcoin cannot fall under $4,600 in the near future. It is probable that it will do so in the next few weeks. Bitcoin’s volume spiked as well to the same level as at the end of February. It is just a matter of time to see whether Bitcoin is currently able to sustain this level.
At the time of writing this article, Bitcoin increased by 12.6% in the last 24 hours, according to CoinMarketCap. Currently, the digital asset has a price of $4,653 and it has a market capitalization of $82 billion.