When’s Bitcoin Likely to Moon?
- Bitcoin investors attention should be on just a few of the crypto exchanges and they wouldn’t miss a thing
- There’s still fake volume in the market but Digital Asset Research says it is “not materially impacting the price”
- If BTC holds at $7,800, the bottom might be in but a move up means “we're likely to moon for the next few months at least”
Bitcoin is off to its best start of the year since 2012, gaining 20% in two weeks. The day BTC climbed to $8,900, 2020 high, the market registered record volumes across the market.
However, there's only a handful of exchanges that are key to setting the prices. Only 10 markets including Binance, Coinbase, Huobi, HitBTC, and Liquid are where most of the price discovery takes place and then migrates to other sites, according to Digital Asset Research.
“There’s some lessons here that most of the time, most of your attention should be on a smaller group of these exchanges,” Doug Schwenk, chairman of DAR told Bloomberg.
This should go some way to ease the concerns of the US Securities and Exchange Commission who has rejected applications from firms seeking to start Bitcoin ETF because of worries over market manipulation.
“Even though we know there’s fake volume in the market, that fake volume is not materially impacting the price,” said Erin Friez, general counsel at DAR.
The firm also found that futures contracts on derivatives exchange BitMEX may have an impact on the digital asset’s price.
Bitcoin pushing towards $10,000 in the next few days
Now, after climbing to $8,900, Bitcoin has now come back down to $8,670 level.
A consolidation after a rally of this size, Mati Greenspan, founder of Quantum Economics says it is a “natural thing to happen.” Greenspan in his daily newsletter, explained,
“We're now near the top of the channel that we've been tracking. Some might even say we've broken it. More importantly though, we're now testing that 200-day moving average.”
We could also see a pullback as there might not be enough steam for BTC to bust through the channel. If BTC holds at $7,800 while on its way to the downside, the former eToro analyst says, it would be safe to say that the bottom is in.
But if Bitcoin does end up surging, after all, Greenspan wager, “we're likely to moon for the next few months at least.”
Analyst Galaxy also sees Bitcoin pushing towards $10,000 in the next couple of days if we manage to hold $8,500 level.
Textbook breakout & retest in the making.
— Galaxy (@galaxyBTC) January 16, 2020
The analyst also shared another hopium induced chart yesterday where he said if BTC manages to break an important line it will trigger the next parabolic movement that would take us to a new all-time high (ATH).
Breaking the green line will be what triggers the next parabolic movement that will take us to $100K minimum.
Save this picture.
— Galaxy (@galaxyBTC) January 15, 2020
With Bitcoin price slowly making its way downwards and the Crypto Twitter divided between the bears and bulls, it’s to be seen the direction Bitcoin will move in next.