Story by: Charles Bovaird
Bitcoin has been following a steady, upward trajectory as of late, recently approaching the key $6,000 price level.
The world’s largest cryptocurrency by market value has risen from close to $5,000 in late April to nearly $5,975 today, according to CoinDesk data.
In addition, the cryptocurrency has displayed “fundamentals-driven bullish signals,” such as “price momentum, infrastructure development” and “institutional interest” for “several months,” according to a recent report released by prime dealer SFOX.
[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Bitcoin’s Significant Upside Potential
As long as existing trends continue, bitcoin should soon surpass $6,000, which several analysts have identified as a key price level.
Should the digital currency generate strength above this price point, it will likely experience substantial gains, noted analysts.
“6k will probably [be] a tough nut to crack, but once it definitively falls, there will almost certainly be a strong surge higher,” said Tim Enneking, managing director of Digital Capital Management.
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John Todaro, director of digital currency research for TradeBlock, offered a similar point of view, describing $6,000 as a “key price level for bitcoin.”
“The market over the past 1-2 months, has seen significant upward momentum and has brushed off numerous negative headlines within the space,” he emphasized.
“If we break above the $6,000 level, we could continue to trade higher as momentum builds and negative news reports have a limited downward impact,” said Todaro.
Jeff Dorman, chief investment officer of asset manager Arca, also spoke the bullish nature of bitcoin markets.
“Fundamentals have definitely been improving for months,” he noted, “and price has just started to catch up to these developments.”
“We have a whiteboard at Arca where we list the positive and negative macro factors affecting crypto, and the positives have outweighed the negative for months,” he added.
“More importantly, the negatives are largely one-off idiosyncratic events that create tail risk but are not persistent (exchange hacks, negative SEC rulings, equity implosion) whereas the positives are long-term game changing events (improved infrastructure, incumbents entering the space, better UI/UX, etc).”
Dorman weighed in the market’s future direction, emphasizing that bitcoin could be headed for some substantial upside.
“I don’t make price predictions,” he stated. “I prefer to focus on probability-weighted outcomes, and right now, that skews bullish.”
“From a technical perspective though, there is reason to believe that if we cross that psychological $6000 barrier, which acted as before BTC finally crashed in November and is now acting as resistance on the way up, there could be little standing in the way of rapid and significant gains.”
Original story: https://tinyurl.com/y5dqkwhw