At press time, the father of cryptocurrency has spiked to roughly $4,300. This is a $700 rise from last week’s bloodbath that saw bitcoin trading for roughly $3,600 at Thanksgiving time. It was an ugly period that many of us don’t wish to repeat, but are analysts bullish about the sudden rise, or is it just a fluke?
Bitcoin has risen by approximately 16 percent since last week. It’s a nice little reminder of the currency’s strength, but it’s still got lots of room for improvement. After all, the drop it’s incurred as of late exceeded 35 percent, and let’s not forget that at one point, bitcoin was trading for just shy of $20,000.
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Bitcoin and market analyst David Puell believes that while the currency still has potential, it has not yet reached its bottom. However, he’s confident it could reach that bottom as early as December (February at the very latest). In a recent interview, he comments:
“Since volatility has dramatically increased, it is pertinent to have a granular view of current volume node structure. Resistances have piled up, so any pullback must be closely watched for any sign of exhaustion. The $4,300 area is the center of the mass.”
When describing the latest chart trends for bitcoin, Puell mentions:
“Weekly gaussian bands show a crucial conference with the general $2,800 high value node zone. This gives a more detailed view of the nuances that come with that level in terms of potential swing and closing weekly price behavior. This general area is also supported by the 200-week MA and a good deal of buying positions (volume at time) back in September 2017… Given the strength of the downward and current formation, a selling climax may come as soon as December or as late as February.”
More bullish about the present scenario is Jeff Sprecher, chairman of the New York Stock Exchange (NYSE). At a recent conference, Sprecher commented that bitcoin will “undoubtedly survive,” and he believes we can’t allow the price to downplay bitcoin’s benefits or dominance in the financial market:
“As an exchange operator, it’s not our objective to opine on prices. Somehow, bitcoin has lived in a swamp and survived. There are thousands of other tokens that you could argue are better, yet bitcoin continues to survive, thrive and attract attention. Often in finance, it’s not about being the best. It turns out to be about being the broadest and the most commonly accepted, and for whatever reason, bitcoin has become that.”
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