Analysts are skeptical about Bitcoin being ready to stick to $4,000, despite recent growth
Over the last four days, the entire crypto market registered a noticeable growth, its value going from $120 billion to $135 billion. The most impressive gainers were EOS and Litecoin, overperforming Bitcoin, thanks to their 4, respectively 6 per cent price increases in the last 24 hours.
However, the focus remains on the most popular crypto asset, in terms of market cap, Bitcoin, as a lot of analysts are still not convinced that its recent growth can generate an upside trend and surpass the $4,000 mark any time soon.
A few positive signs for the market
So far in 2019, most cryptocurrencies have strengthened, despite the 85 per cent valuation loss of the market, compared to one year ago, when the ICO craze was spreading ridiculously fast. But things are quite different now, as the market shows signs of maturity.
Some of the biggest tech companies, as well as financial institutions, have started to develop and infrastructure, in order to support digital assets. Nasdaq, JP Morgan, or Samsung are just a few examples. As a side note, the South Korean manufacturer just announced its latest flagship smartphone, the Galaxy S10, which offers private key storage support.
Returning to Bitcoin, there are quite a few technical indicators pointing towards a minor retrace in its price over the next period, succeeded by a rapid movement from around $3,500 to $4,000.
Is a bullish behaviour close than we think?
One specific analyst, using the alias “The Crypto Dog” explained that it would be risky for Bitcoin to go past $4,000, at least for the moment.
“Potential bull pennant. I’m not trying to fade it, but not in a leveraged position either. If we break down $3,800 in the first major support and it may hold, but for now I’m just holding spot waiting for a long closer to $3,720.”
He also compared Bitcoin’s current run to Ether’s from the first days of January, adding that it could pump, but he doesn’t see long $3,9xx as a viable option.
While BTC somehow shows stability around $4,000, other altcoins have started regaining their momentum. But can this last or even go higher? Very hard to tell.