The crypto winter for this nascent space of blockchain ended just recently as its biggest spearhead, bitcoin, broke past its months of bearish behavior. After floating in the $3,000s for quite some time, bitcoin broke the $4,200 level and has now gained a significant price spike standing around at almost $5,300. For the past 3 days, bitcoin selling has gained much strength as people are flocking in to buy the asset. But seeing its past behavior and volatile nature, it is quite probable that a dump might just be one the way as pointed by a cryptocurrency price action trader.
$BTC – 1h closed below $5318 & The Daily Open.
There’s still a strong sell signal that has been active for the last 3 days. Indicating a larger dump is incoming.
The sample size on XBTUSD for that specific signal isn’t very large but it’s still something to be aware of. pic.twitter.com/Xu8JphlnVG
— UB (@CryptoUB) April 19, 2019
Traders and investors who are bandwagoning on this upward spike of bitcoin need to be very wary of the bumps that might be lying head as the asset is still as volatile as ever. Everything in excess is bad, be it the optimism.
The bear market of bitcoin cast its shadows for months. As opposed to the highs that the asset saw in December of 2017, the asset was below more than %75 of its peak in the past recent months. Now with a slight buttress in place, things are getting oriented for a bull-run again. In a recent report pushed forward by Adamant Capital, it is highlighted that bitcoin is currently in the accumulation phase. This is the phase during which whales and investors are going to buy and accumulate as much of the asset as they can so that it can be used in the future for good when the price is high. The report specifies this range to be from $3,000-$6,500.
“Buy the Dip” is a very famous phrase that is used by most traders. Since bitcoin is relatively very far below its peak of almost $20k, many argue that the time for buying bitcoin is now. Many experts claim that although the price of the asset is low, its value is increasing as technological and regulatory advancements promulgate. Talking to the founder of Morgan Creek Digital, Anthony Pompliano, big time crypto-bull and cybersecurity expert, John McAfee said:
I don’t care if its a penny today, it’s going to be 2 million dollars very soon…What’s happening in the market has nothing to do with the reality of its value.
But despite the price spikes, the need is to stay wary. Too much optimism can lead to huge losses as well, just as the people who bought bitcoin at its peak of December of 2017 experienced. So, better watch out.