Bitcoin has enjoyed a good bullish run for a couple of months but we might be looking at a few days of turbulent markets.
Bitcoin pulled back to $8000 briefly after touching the $9000 mark. The movement began with a swift move up and then the break downwards. However, the price found support near $8300 instantly as well. $8300 was the earlier break-away point for Bitcoin. It is currently trading around $8,530.
Vinny Lingham, a prominent crypto trader said:
“This BTC action looks aggressive. Makes me think that we may blow through $10k and test $12k very soon, but $12k is a very heavy resistance level, so I would expect consolidation around the $10k level for some time if $12k is (likely) rejected.”
However, many do not believe this line of thinking. Mati Greenspan, the Senior Market Analyst at eToro is one of the who says in his blog:
“The CME bitcoin futures contract for May is set to expire at 4:00 PM in London today and, with more than $8 billion worth of volume traded so far, it’s going to be the biggest one ever… Traders on the CME could be hedging their positions with real BTC holdings elsewhere.”
Another factor is the mining difficulty which is reaching all-time highs. Bitcoin mining difficulty was at a significantly low level especially in December of 2018 when the price of Bitcoin was at its all-time low since the 2017 bull market. It has however seen a steady rise since then to reach the new ATH of 7.46 from the former ATH of 7.45 T. The hash rate is also at a significantly high level of ~58 TH/s, a level that is almost at an all-time high.
If the price of Bitcoin hits above the $11,700, there won’t be a lot of resistance ahead apart from around previous all-time high. New bull will be achieved if all the resistances are conquered and chances of Bitcoin reaching a new all-time high will rise significantly. Most analysts anticipate that Bitcoin will reach new all-time highs in 2020, if not later.