The Bitcoin market has finally pushed over the $8,000 barrier, after a first attempt on April 12. Bitcoin is up and trading at $8,053 as of Friday, April 13. In the meantime, experts predict the bitcoin price to surge higher.
Bitcoin Steadily Breaks $8,000 As Analysts Expect Another Surge
Bulls seem to be back in action as the price of Bitcoin was able to return above the $8,000 despite the downward pressure observed in 2018. With trading volumes below $5 billion throughout the whole week, the surge seen yesterday brought a new spark to the market, which has doubled the transaction volumes to nearly $10 billion on Friday.
Expert analysts are forecasting another surge in the price of Bitcoin. Danny Masters, Chairman of CoinShares, told CNBC’s Fast Money that Bitcoin, “the reserve currency for cryptos”, is about to bounce back. Masters expects the market to regain confidence as sidechain companies develop usable technologies in the next nine to 18 months.
Supporting the reinvigorated upside are the current geopolitical tensions between the United States and Russia amid a potential military intervention in Syria. Fear drives investors away from higher-yielding assets as they flock towards safer assets, such as gold. Cryptocurrency enthusiasts tend to view Bitcoin as digital gold. Mark Cuban, the billionaire Shark Tank personality, has said he prefers bitcoin to gold, albeit marginally.
In recent months, the Bitcoin price declined by as much as 65% compared to late 2017. Many different factors were behind the sell-off, and the tax season is one of them. Given that taxpayers have a lot more capital gains tax in 2017 than originally expected, Bitcoin holders are finding themselves in need to sell more of their portfolio in order to pay those taxes. That helps explain the negative bias in recent months. With these concerns almost gone, the markets are rebounding strongly.
According to the Tradingview platform, the price of Bitcoin reached a high at $8,200 and the digital currency has been able to be sustained above the $8,000 line. The whole cryptocurrency market is on a green day, with most top coins and tokens posting double-digit gains in the last 24 hours. Bitcoin is up by 13.51%, Ethereum gains 17.12%, and Ripple surges by 20.59%.
The biggest winner in the top 20 cryptocurrencies by market cap, according to Coinmarketcap.com, is IOTA, which is up by 28.36%. Golem (125.47%) and Bitcoin Private (115.49%), ranked #35 and #31 in the top 100 by market cap, are up by three digits.
Technical indicators for today were pointing to the resume of the selloff if the price failed to break the 200 SMA (4-hour) dynamic inflection point. The traction gained yesterday represents a bullish breakout from the symmetrical triangle formation on its short-term charts, which may lead to a move all the way up to the resistance and area of interest. The next potential resistance is near the $10,000 mark.