After plunging by nearly 15 percent recently, bitcoin seems to have found a floor and has rallied more than 5 percent in the last 4 trading sessions andand some say this may be a good time to get in for the inevitable return of the recent bull run.
From a technical level, there had been some worrying patterns developing on the charts for the world’s most popular cryptocurrency and once this came to the forefront a sharp move in the price was always a possibility
“Bitcoin had been due a price break for some time," said analyst Simon Peters.
"Since reaching $14k back in June, the crypto asset has been making 'lower highs' and 'higher lows', forming a 'symmetrical triangle' chart pattern converging towards an apex. Generally, this pattern precedes a breakout either higher or lower, and this is what we saw yesterday." He added.
Mr Peters noted that at current prices, it may be time for a long position as the fundamental factors to own bitcoin remain strong and the big backers of bitcoin won’t be too concerned about the recent fall
Global uncertainty surrounding the trade war between China and the US ias well as the deadline for Brexit approaching at the end of the month may be another reason investors seek out alternative assets such as bitcoin as a safehaven
“Now that Bitcoin is now trading below $8,500, it could become an attractive proposition for investors who want to buy the dip. Fundamentals such as hash rate remains strong, and adoption of crypto is still moving forward at pace. With those conditions in mind, we could see the price rise back up to $10,000 within the space of the next month.” Peters added.
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