Bitcoin Consolidates Above $10,000, Are the Bulls Back?

Bitcoin Consolidates Above ,000, Are the Bulls Back?



Bitcoin Consolidates Above ,000, Are the Bulls Back?

After a rough July week in the sweltering heat of profit taking, Bitcoin price has for once stayed above the key USD 10,000 level for over 24 hours now, for the first time since the last weekend.

Friday trading started quite intense, and we witnessed two wild swings during noon time in London when a spike took Bitcoin from USD 10,300 to USD 10,650, only to crash down just an hour later to the daily low of USD 10,133 (CoinDesk). For a moment, it looked precarious as the much-needed respite above this support was about to be lost. However, trading picked up intensely and traders poured into the market to obtain more Bitcoin at discount prices.

This opportunistic buying activity continued well into Friday trading time for North America, but while volumes continued to climb, price only moved up much more patiently, and it would take all of the Asian trading for Saturday to take Bitcoin to its daily high of USD 10,708, before European trading chipped away slightly at that. It now trades at 11:16 am London time at USD 10,582, but still up 2.32% from yesterday.

Overall, the entire crypto market has been buoyed by this latest weekend rush, as the total market capitalization is restored to almost USD 290 billion, with Bitcoin dominance recorded at 65.4% (CoinMarketCap). This will be positive news for altcoins especially, to gain back some share and retake ground lost in a difficult July.

On the back of improved fortunes for digital assets, a recent survey by Harris Poll that provided some evidence that fundamentals for Bitcoin really is improving has been brought up again. It now appears this can be a good explanation for the bull run of recent months.

Commissioned by Blockchain Capital, The Harris Poll asked 2,209 American adults in April 2019 to get a sense of the general public sentiment towards Bitcoin. Following on from an earlier survey two years ago, the poll tested responses on a wide range of Bitcoin attributes, including awareness, familiarity, perception, conviction, and propensity to buy the world’s most recognized blockchain asset. Researchers also gauged levels of preference for Bitcoin over altcoins, and ownership numbers.

The indicators were unanimous: younger people (aged between 18 and 34 years old) are the true drivers behind the current growth pattern of Bitcoin. The survey concluded:

“The results highlight that Bitcoin is a demographic mega-trend led by younger age groups. The only area where older demographics matched younger demographics was awareness: Regardless of age, the vast majority of the American population has heard of Bitcoin.”

Spencer Bogart, a partner at Blockchain Capital, underlines that this survey was taken during a bear market (April had not yet seen Bitcoin fortunes change), in stark contrast to the 2017 survey that was done in the midst of a parabolic rise for Bitcoin price. And the findings meant that even low prices had not deterred the optimism for the digital asset. He wrote:

“Despite the bear market, the data shows that Bitcoin awareness, familiarity, perception, conviction, propensity to purchase and ownership all increased/improved significantly — dramatically in many cases.”

Incidentally, a non-related poll also by Harris Poll, has found out that Generation Z people (the loose term for the current crop of youth and young adults, and a generation after the age group in the previous survey on Bitcoin) believe that wealth is defined better with how one lives, rather than the money one has. So is it a possibility in the immediate future that Bitcoin hopes, for now, rests not on Generation Z but on millennials?

Whatever the case, the bulls need not be convinced about the past few weeks of Bitcoin developments. Charlie Shrem, the co-founder of Bitcoin Foundation, is one of a growing group who believes that USD 1 million is a natural long-term target for Bitcoin.

Objective traders like those at FXStreet do see a climb to USD 11,000 but says that it will face “two healthy resistance levels” along that path. If they are right, then right now Bitcoin is attempting to overcome the first at USD 10,540.

Those believing that the dip was just the start of a fall, however, insist that lower prices are yet to come. Analyst John Kolovos tells Crypto Mak that USD 8,500 is a real possibility, given that US Federal Reserve Chair Jerome Powell’s bearish comments against Bitcoin and Libra had yet to take their toll.

And so, with the weekend starting off on a good note, and with Friday bears seemingly in retreat, the question for traders now is: can Sunday cap off a strong performance? Or will further profit-taking eat into motivations for July? As always, time will tell, but American traders about to enter the game will be the first to provide such clues.

 

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