Bitcoin Hit A Fresh 2019 High. What Does That Mean?
Story by: Charles Bovaird
Bitcoin prices climbed today, building upon their recent gains and reaching their highest level this year.
The digital currency rose to $5,791.21 at roughly 6:00 a.m. EDT, according to CoinDesk price data.
At this point, the cryptocurrency had appreciated approximately 8% over the course of 24 hours and was trading at its highest point since November, additional CoinDesk figures show.
While this rally certainly looks positive for bitcoin, the digital currency failed to test $6,000, which has repeatedly been singled out as a key area of resistance.
[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 Rally’s Significance
Even though bitcoin fell short of that key price level, several analysts claimed the cryptocurrency’s latest rally was certainly worthy of mention.
Mati Greenspan, senior market analyst for social trading platform eToro, spoke to this:
“This is a significant move because it confirms the continuation of the upward trajectory,” he stated.
“Following the April 2nd surge, several analysts [were] worried that we might see a Bart Simpson pattern,” said Greenspan, referring to a situation where “price surges, stays up for a while creating a spiky haircut, then price plunges back.”
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“That’s basically off the table now,” he stated.
‘Important Implications’
Jon Pearlstone, publisher of the newsletter CryptoPatterns, also weighed in on the digital currency’s recent bullishness.
“The move today to new 2019 highs for Bitcoin could have important implications for the crypto market,” he noted.
“Bitcoin now stands poised to get back above the key $6000 level,” said Pearlstone.
“This is a big deal from a technical standpoint and means Bitcoin is at an important inflection point.”
John Todaro, director of digital currency research for TradeBlock, emphasized that the cryptocurrency’s gains in recent months probably drew market participants to the cryptocurrency.
“Bitcoin and digital currencies still trade largely around momentum,” he stated.
“The continuous grind higher over the past few months, likely encouraged traders and investors to put more capital to work and drive the price higher in the latest upward movement.”
Signs Of Adoption
Todaro also emphasized the positive news developments that have materialized lately, which have helped show that digital currencies have been experiencing meaningful adoption.
“You also have had positive reports come out recently, such as Facebook’s push to raise $1 billion in capital for its new stablecoin, as well as reports that TD Ameritrade and E*Trade are looking to launch bitcoin and ether trading,” he stated.
Original story: https://www.forbes.com/sites/cbovaird/2019/05/03/bitcoin-hit-a-fresh-2019-high-what-does-that-mean/#47e1a6af78e4
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