Bitcoin has been bullish in the past weeks. It has stayed above $5,000. And today, it was able to break the $5,600 level. This pattern has been known as a ‘golden cross’. It indicates that the short-term momentum is performing better than its long-term trends.
Now that Bitcoin is finally recovering from the bearish market that it experienced after reaching its all-time high in 2017, many are asking if it is on its way up. If you will look at the other cryptocurrencies, the upward surge has been isolated to Bitcoin. And though it seems that Bitcoin seems about to go to $6,000, a prominent crypto analyst believes that there’s a resistance found between $5,800 and $6,000.
360Trader who made a name in the Twitterverse as a prominent crypto analyst mentioned that “The real $BTC battle should be the $5,800-$6,000 marker. Back in the day it was a beast of a support…Let’s see if it’s a beast of a resistance”.
What could make Bitcoin go above $6,000? Lukman Otunuga who is a research analyst mentioned that “The technical picture for (Bitcoin) is looking increasingly bullish on the daily charts with the fabled ‘golden cross’ slowly coming into play”.
Though it is undeniable that there are the likes of Ethereum, XRP, EOS, and TRON being popular today, Bitcoin holds a huge margin over Ethereum, the second largest crypto based on market cap. In fact, Bitcoin’s market cap is ahead by $80 billion. And from 51% market dominance during the start of the year, Bitcoin now controls above 53% of the entire crypto market cap. This has been the most dominant Bitcoin has been in recent months.
However, in contrast to 2017’s performance, Bitcoin still can’t match its 85% dominance that year. Though Bitcoin is still a household name, there are altcoins that have now established a name. For instance, you have XRP that is now targeting institutions for their cross-border transactions.
There are a lot of positive regulatory changes happening in the crypto market today. In fact, one of the reasons is that there is a demand from institutional investors to get involved in the crypto market. For instance, JP Morgan now developed its own brand of cryptocurrency. Though it is going to be used internally and is pegged to the US dollar, it is a 180-degree turn from its former stand against cryptocurrencies.
Also, you have changes such as the Token Taxonomy Act that could potentially define what cryptocurrencies are. It hopes to resolve patchwork regulations that contributed to the confusion within the niche. Though it is still not a law, this is a move towards crypto regulatory clarity. This could potentially clarify if crypto is actually a security or a commodity.
Today, Bitcoin and Ethereum were the only ones considered as a clear cut commodity. As for the other cryptocurrencies, other altcoins remain in limbo. It is still a grey area. Now, could we possibly see regulatory clarity go hand in hand now that it seems Bitcoin price is going up? Do you think that it is the perfect time to buy Bitcoin?
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