The happy days for the bitcoin faithful are back. After a lengthy period of turmoil in the market and the long crypto winter, the currency has shown its resilience. Despite having many skeptics write it off, bitcoin has fought back and now, it’s just inches away from $9,000. And this won’t be all, according to one analyst who believes that it’ll hit the important $10,000 milestone in a week.
At press time, bitcoin was trading at $8,730. In the past 24 hours, the currency had gained 0.4%. The trading volume stood at $24 billion. On BitMEX, the currency had registered $2.5 billion worth of trading volume in the past 24 hours. On some exchanges such as LakeBTC, the currency had already hit the $9,000 mark.
The last time bitcoin traded above $8,700 was exactly a year ago in May 2018. Since then, it has been on a downward trend, hitting new lows in December last year. However, the worst seems to be behind us now.
And if you think this is impressive, check back in a week. According to one experienced analyst, the currency could surpass the all-important $10,000 mark in a week.
To The Moon
Naeem Aslam, the chief financial analyst at online forex broker Think Markets, believes we’re just getting started. In a note to clients, Aslam stated:
If you are not ready then get ready, because the bitcoin price is about to blast past the level of $10K, recovering half of its losses from its all-time high, a really embarrassing moment for those who said that the currency will never recover from its losses.
There have been many who had hailed the 2018 bear market as the end of the crypto industry. Just this month, Brad Sherman, a Democratic Congressman from California, asked for the banning of crypto in the U.S. According to him, the U.S gets its power from “the fact that the U.S. dollar is the standard unit of international finance and transactions.” In allowing the use of bitcoin, it would be relinquishing this ‘power.’ Interestingly, bitcoin has surged by 50% since his comments.
Aslam believes that bitcoin will hit $10,000 by the end of the next week. The rise is supported by the fact that it’s trading above its 50, 100 and 200 moving day averages. These technical tools enable traders to create a continuous updated average price.
The moving averages are very important because they define the trend; if the price stays above them, it shows that the uptrend is strong and when it starts to trade below them, then it means a downtrend.
Never Doubt Bitcoin’s Resilience
To Congressman Sherman and all the other doubters, Aslam had one thing to say:
This is what bitcoin is all about. Never doubt the resilience of the currency and the support it has among the community.
Once the currency hits $10,000, the $15,000 level will be the next target. However, at $10,000, market factors could push it back to the $8,000 support level before it finally takes off.
Nevertheless, the crypto industry hasn’t been in a better position than it is right now. This is partly thanks to institutional investors who have continued investing in cryptos. The evidence of their involvement is the rising volumes for bitcoin futures, Aslam explained.