After remaining bearish for a few months, bitcoin broke two resistance levels of $4,200 and $4,600 to boom past the $5,000 mark. Since then, it is almost floating around this level continuously and now, it looks like the asset might be set to break the $5,400 as well.
— TradingView (@tradingview) April 16, 2019
After teasing much below the $5,080 mark, the asset is now standing around the $5,205 mark. It is expected by some that it will now be floating in the upper ranges of its price moving forward.
This weekly looking like continuation above $5400. Should be a fun week. We ranging in the upper bounds of $btc now
— WildWestTrades (@WildWestTrades) April 16, 2019
The recent price spike has gained much attention from the trading and investment community as they are all hoping for bitcoin to break the next resistance levels. As suggested by a trader, a rise above the $5,350 might even send the asset to $6K.
— Tyrion Coinister (@Crypto_Maester) April 16, 2019
Bitcoin’s price is highly volatile and is largely based on speculation, meaning its value is established because people believe that the asset carries some value, which will further increase in the future. There is no physical backing of the asset. Due to the small market capitalization, its price is also prone to manipulation by big whales. Big whales in the game use pump and dump strategies to gain maximum benefits in their favor. Huge amounts of bitcoins can be bought by the whales to push the price upward and then selling it later on in large numbers thereby increasing the supply and decreasing price. But this is just something that comes naturally with such a small market cap.
In the past, we have seen bitcoin go through extreme breakthroughs within a matter of hours and days. The bull run of 2017 is in front of everyone when the asset almost touched the $20,000 mark within a month after rising up from a few thousand. The recent spike in the price might even herald a new bull-run for the asset. With such a small market cap, it is not that difficult as well. As more people are attracted to its price and start buying the asset, we might see a sharp spike in its price very soon with $5,400 and $6,000 being the very first targets. All eyes are fixated on the digital asset, it is just a matter of time now. The ride for the asset is being expected upward from here on by many traders and investors in the game. Let’s just see how it behaves.