After trading in the $8,700 to $8,800 range for the past few days, Bitcoin finally made its long-awaited break for $9,000 but got heavily rejected and knocked back down to $8,600. While some investors may be spooked by this movement, all indicators suggest it will likely be followed by even higher highs.
The price tapped out at $9,090.94 before plummeting to $8,558 within a matter of minutes but has since managed to find mild support at around the $8,600 level. Could this be the start of the massive correction that analysts have been predicting since the beginning of May – or the beginning of something even bigger?
Let’s not get ahead of ourselves
The $9,000 level for Bitcoin has always been a significant psychological selling point for several reasons so a huge drop following a $9k break was always on the cards.
$9,000 is the highest point that Bitcoin reached against the U.S. dollar (USD) in May last year, so it represents a significant price reversal for the asset over a 12 month period. With no hacks, regulatory restrictions or negative news to have spurred on this correction, it’s most likely just an advantageous selling point that many BTC hodlers have been waiting to capitalize on.
If anything, Bitcoin is in a better position than ever
With the US-China trade war laying waste to traditional stock markets around the globe, the cryptocurrency industry is gaining ground amongst a sea of drowning investors eager to grasp on to any solid land. In a recent interview with Bitcoinist.com, financial theorist and Keiser Report host Max Keiser spoke of the ongoing Chinese and Russian departure from the U.S. dollar standard and their reinvestment into the old safe haven of gold – and the new safe haven of Bitcoin.
“I see Bitcoin hitting $100,000, like I said back in 2011 when it was $1, and I don’t consider the recent 80% pullback (the fourth I’ve seen) significant,” stated Keiser, just as bullish as ever.
Keiser backed up his claims by noting the 50 percent increase Bitcoin has enjoyed since US Congressman Brad Sherman called for a ban on cryptocurrencies and the growing influence Bitcoin ‘whales’ impose over ever-tightening SEC regulation.
So where are we going?
Bitcoin has already found significant support at $8,600 as predicted and will likely accumulate at this stage with a bit of flip-flopping between $8,500 and $8,700 before the next big break to $10,000 and above.
In addition, everything is in the green for Bitcoin – not just its recent price rise this month. The long-sort after institutional investment that everyone has been harking on about has finally arrived in the form of Grayscale, Fidelity, and E*Trade, Bitcoin is trending on Google again and trading volume is breaking records on a monthly basis.
For the first time in over a year, there is a teeny tiny chance that John McAfee might not have to have a second serving of sausage for breakfast on New Year’s Day, 2020.