- Bitcoin tops $ 8, for the first time in over a month.
- The rally may signal a trend reversal underway for the largest cryptocurrency.
- Bitcoin’s Fear & Greed Index shows market conditions are improving at the start of the year.
After more than a month of lateral trading,bitcoin’s priceappears to be gearing up for a major breakout in the not-too-distant future.
The largest cryptocurrency finally pierced above $ 8, on Tuesday thanks to a noticeable spike in trade volumes.
Bitcoin (BTC / USD) Tops $ 8, 000
After a quiet start to the year, bitcoin’s price has attracted stronger bids over the past two days. The largest cryptocurrency clawed above $ 8, 563 on Tuesday for the first time since Nov. (**************************************************************. The nearly 5% rally has some traders excited about an imminent trend reversal.
Their excitement isn’t without merit.
As the daily chart illustrates, bitcoin’s price is back above the – day moving average. Largely seen as a bullish move, the price action foretells bigger gains in the near term.
despite a slow start to the year, bitcoin is up nearly $ 1, 000 Since Jan. 1.
At current values, the largest cryptocurrency has a total market capitalization of $ (****************************************************. 7 billion, according to CoinMarketCap. The tracking website shows daily trade volumes of nearly $ billion, most of which is fabricated. TheBitwise data feed, which includes turnover at ten verified spot exchanges, reads closer to $ 1.4 billion.
Compared with hours ago, bitcoin’s price has gained nearly 7%. The rally has been accompanied by a much broader uptake of digital currencies, with altcoins and tokens appreciating sharply over the past day. Bitcoin’s dominance rate currently sits at less than (%.
Is the Bottom In?
Bitcoin’s recovery comes on the heels of multiple bullish calls by some of Crypto Twitter’s most influential voices. Several notable traders have alreadycalled bitcoin’s bottomand expect the largest cryptocurrency to push higher in the first quarter.
Alternative’s sentiment analysis indicator points to improved investor sentiment. The Bitcoin Fear & Greed Index now sits at 100, having recovered from a state of ‘extreme fear’ of (last month.)
While some analysts have connected bitcoin’s rally to heightened tensions between the U.S. and Iran,geopolitics probably didn’t factor into investors’ decision to accumulate crypto. Technical trading and the presence of oversold conditions likely played a bigger role. Combined with smart money accumulation, bitcoin’s performance probably has less to do with Iran and more to do with re-positioning ahead of what’s expected to be a critical year for crypto.
Fundamentals also support bitcoin holders’ long-term investment strategy. Hash rate has not only hit new all-time highs,it’s up eight times since late
when bitcoin peaked near $ 27, (**************************************************************.
This article was edited by Josiah Wilmoth
Last modified: January 7, (7:) **************************************************** (PM UTC
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