Bitcoin Could Trade At $5,200 For Weeks, Here’s Why It’s Good For BTC
Story by: NICK CHONG
On Wednesday, Bitcoin (BTC) embarked on a slight rally, moving from its local support at $5,200 to higher levels as most other crypto assets, like Ethereum, XRP, Tezos, and Binance Coin, rallied strongly. As of the time of writing, BTC has found itself at $5,300, posting a 1% gain in the past 24 hours, while a number of altcoins have gains in the low single digits (2.5% to 5%).
Related Reading: Crypto Market Wrap: Tezos Leading The Pack Back to $180 Billion
Although cryptocurrencies are expressing signs that they are looking to surge for a second time, some analysts are adamant that BTC will flatline from here. But, that isn’t necessarily a bad thing for crypto’s prospects.
Bitcoin To Stagnate From Here?
After BTC exploded from $4,150 to $5,000 on the back of renewed institutional interest and an influx of buy-side volume, investors across the board were calling for cryptocurrencies to skyrocket even higher. This 20% move, which came within 24 hours, was such a breath of fresh air that traders were, let’s say, high on the high.
Prominent crypto trader Josh Rager, however, tried to calm traders. In a tweet, the advisor to cryptocurrency startup Level claimed that BTC’s accumulation phase in the 2014 to 2015 bear market lasted for a painful 216 days. When BTC spiked past $5,000 in this cycle, accumulation had only occurred for around 110 days. In other words, if the crypto market was to rally further, widely-followed historical trends would have to be deemed moot.
