Bitcoin will, I belive, imminently test the crucial $6,000 price support, building confidence on the wider cryptocurrency market.
Over the past 24 hours, the price of Bitcoin price has recorded an increase of 4.3 percent. In the past month, it has jumped from $3,900 to $5,630 – almost 40 percent. Pretty impressive by any standards.
Technical analysis, including long-term indicators such as the Moving Average Convergence Divergence and the Exponential Moving Average are showing signs that Bitcoin is ready to hit the critical $6,000 level.
Further bullish impetus for Bitcoin may also be provided from a so-called golden cross - which is when the 50-day moving average pushes beyond the 200-day moving average.
Anecdotally too, it seems the broader sentiment is definitely turning decidedly more bullish amongst crypto traders. Many of even the most strident bears appear to be flipping.
I believe we will see many retail and institutional investors who have been sitting on the sidelines now unleashing their investment in the crypto market.
A new breakout of $6,000 by Bitcoin – the largest, most dominant digital currency - can be expected to fuel an accumulation period and will further boost confidence in the wider sector.
Once this confidence is in place, the sky is the limit for cryptocurrencies, which are increasingly accepted by both retail and institutional investors as the future of money.
I recently forecast that we could reasonably see the Bitcoin price hitting $7,000 in the next few months. The expected $6,000 test is, of course, a major step in reaching this level.
The fundamentals of Bitcoin, and cryptocurrencies more generally, are stronger than ever.
It’s still too early to accurately say that Bitcoin is now in bull market territory - but the evidence for this trend is increasing day by day.
Once the $6,000 level is reached it will set the positive direction of travel for the rest of 2019.
Nigel Green is founder and CEO of deVere Group. One of the world’s largest independent financial advisory organizations, de Vere does business in 100 countries and has more than $12 billion under advisement.
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