Despite Bitcoin’s Shooting Past $8,400, Trader Remains Bearish, But Why?
- Bitcoin on the move after Iran fired a dozen missiles at US bases in Iraq
- Price needs to break above $8,800 or it would imply “continuation to the downside”
- $5k-$6k still possible if miners continue to increase hashrate excessively
In another bullish move, Bitcoin price climbed 10% to reach as high as $8,463 on Bitstamp. In the past week, when BTC price first surged on the rising tension in the Middle East, BTC price has surged about 25%.
The stock market is seeing losses across the world while oil and gold prices are surging as Iran fired a dozen missiles at US bases in Iraq, as a retaliation for the US assassination of the Iranian military chief Qassem Soleimani.
If President Donald Trump “reacts with aggression” analysts are expecting gold to break past $2,000 and make a new all-time high.
As we have seen in the past week and today, this could mean Bitcoin would surge higher as well. The world’s leading cryptocurrency has already claimed its November level.
It’s Corrective, not Impulsive
With Bitcoin prices rising, the market has turned bullish and calling for a move past $10,000. However, some experts still don’t believe in the current market.
Trader Credible Crypto is not ready to turn bullish just yet as he says the ongoing move seems like a corrective than impulsive action. According to him, Bitcoin needs to break above $8,800 for it to be impulsive but if it fails to do so, it would imply “continuation to the downside.” The analyst explained,
“While I wait to see what the weekly close brings, here are my current thoughts. The break of 8.2k came as a bit of a surprise to me, but while this channel holds, I can't flip bullish just yet.”
Bullish but $5k-$6k still in the picture
One analyst that remains skeptical of this surge and Iran being the driving factor behind this is an economist and trader Alex Kruger.
But Bitcoin shooting past $8,000 has him turning bullish although Kruger has been expecting the crypto asset to hit it weeks before. The trader said,
“I didn't just turn bullish nor did I need of biased on-chain analyses, nonsensical models, arbitrarily angled lines or motivational tweets, nor to believe in a safe haven narrative to be bullish into 8K. Simply going by the chart.”
On Jan 3rd, when BTC price first shot up just like gold after Soleimani was killed in a drone strike, Kruger called it “absolute nonsense.” As Bitcoin detractor and gold proponent Peter Schiff said it is possible,
“Gold is being bought by investors as a safe haven. Bitcoin is being bought by speculators betting that investors will buy it as a safe haven,”
because crypto exchanges or trading platforms do not show any indication of Iranians rushing into BTC. Kruger actually thinks we can even see $5,000 or $6,000 still because,
“The rationale is simple. If miners continue to increase hash rate excessively, sending difficulty higher accordingly, it makes sense for increased selling and a strong bear trend to ensue.”
On Jan 7, Bitcoin hash rate yet again hit a new all-time high at 120.7 Th/s, as per blockchain.com and is not showing any signs of slowing down.