Bitcoin Price Above $8,000 – What’s Next?
By Akke Svenson, founder and CEO of Rahakott.io
On Monday, Bitcoin hit another all-time high at 8,269.70, and stopped around that level. It was the first stop in 8-day winning streak, with Bitcoin showing attempts to retrace to 7,810 daily low.
So, what’s next? That’s the question that makes nervous at least 50% of traders. And in order to understand if the price is ready to retrace, we need to analyse what were the reasons of sharp spike higher seen last week.
Going Back to the Roots
Bitcoin has proved its status of one of the most volatile crypto currencies by its recent moves. On November, 12, we saw a “flash crash” with crypto currency sliding to $5,477 low. Everybody screamed about the bubble bursting and reallocation of funds into Bitcoin Cash. But one day later everything changed.
The cryptocurrency volatility is driven mostly by the fact there is no fundamental factors to move it and no regulator to stop the move. The exchange rate is determined by supply and demand of the market coupled with crypto world regulation news and some technical issues.
In such an environment 30% slumps are not ruled out. But every such slump is the opportunity to get the crypto currency at more attractive price. If it’s sold severely, it means that somebody is trying to manipulate the rate, and once the deal is done, the profit is taken, and the price reverses. That’s why by now Bitcoin not only completely recovered all the losses, but also hit another historical high, and is ready to go higher.
If you look at the daily charts, you may notice that we haven’t seen such a long streak of Bitcoin growth without some corrections. And it looks like the time for a retracement has come before another surge higher.
We recommend to use this opportunity to buy the cryptocurrency at more attractive price. Every drop below $8,000 may trigger another wave of demand on Bitcoin with initial target at $8,480.
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Akke Svenson is the founder and CEO of Rahakott.io cryptocurrency wallet. He is an entrepreneur, IT specialist and blockchain enthusiast. Svenson graduated from the Royal Institute of Technology in Sweden and Stanford University in the US. He began his career at Ericsson, then worked on developing services for financial companies in Europe. For a few years he served as CTO at a Silicon Valley fintech startup. After that, he returned to Sweden and founded his own company, specializing in IT consulting. He became interested in blockchain in 2013, believing that modern technology will help build new economic relationships in the world.