Bitcoin Stable Around $3,600, Could $3,500 be a Long-Term Bottom?
At the time of writing, Bitcoin (BTC) is trading down marginally at its current price of $3,590, down slightly from its weekly highs of $3,750, which were set after the markets surged this past Saturday during a period of low trading volume.
Yesterday, Mati Greenspan, the senior market analyst at eToro, said that the market’s reaction each time it touches the low-$3,500 region could support the idea that this price will ultimately prove to be a long-term bottom for Bitcoin.
“What’s interesting about this graph is the role of the key level of $3,500. As we’ve been discussing, bitcoin has been trading in a tight range between $3,500 and about $4,100… What’s exciting about yesterday’s move is that the direction was quickly reversed and in the aftermath, we even saw a mini rally. This is a very positive sign and could very well indicate that we’re at or nearing bitcoin’s price floor,” Greenspan explained, referencing BTC’s recent drop to $3,500 that immediate sparked an upwards price move.
Bitcoin Unfazed by Further ETF Delays
Throughout 2018 many investors looked towards the approval of a Bitcoin ETF in order to spark the next market rally, as it is widely believed that it will lead to an influx of funding from individual investors and Wall Street investors alike.“So, rather than letting the application be rejected, VanECK has simply withdrawn it – thus denying the SEC any opportunity to deny it. This is what we call a power move,” he said.Furthermore, he also noted that it is important that the markets didn’t respond rashly to the news.
“The price of Bitcoin did decline slightly at the time of the news (purple circle) but is still holding well at the $3,500 support level. The markets lackadaisical response to this news is a clear sign that investors are starting to understand…The crypto market is not dependent on any government or financial institution and no single product or service has the power to make or break bitcoin. We call this maturity,” Greenspan explained.
Bitcoin’s bout of sideways trading has led to a similar situation within the overall cryptocurrency markets, as most major altcoins have been closely tracking Bitcoin’s price action over the past week.
Featured images from Shutterstock.