Yahoo Finance Bitcoin’s on the Bounce and the Cryptos are Following
It was a choppy weekend for Bitcoin, with Bitcoin hitting a weekend high $9,090.8, before taking a tumble through to a Sunday morning low $7,820. Bitcoin ended the weekend down 5.61%, with most of the weakness coming from Sunday, where Bitcoin fell by 4.14% to end the weekend at $8,205.97.
Things were always going to be relatively soft for Bitcoin, with Cboe Bitcoin Futures February contract having closed the previous week at $8,600.
News through the weekend was relatively light, with the only material news being further clarifications on the U.S government’s intentions vis-à-vis the ICO market and cryptocurrency classifications.
A growing concern amongst some people in a position of power in the U.S is that a significant clamp down on the ICO market could put the U.S behind on innovation. With blockchain technology expected to become mainstream in the years ahead, such an outcome would once again put Asia at the forefront of technological innovation, with China becoming an ever prominent global power.
There’s a long way to go and there will be plenty of noise between now and the actual introduction of regulations that will continue to rock the markets over the near-term, though such fears may ultimately play into the hands of the cryptos.
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Following a weekend stumble, a lack of major news has provided some support to the cryptos at the start of the week, with Bitcoin gaining 4.37% to $8,419.37, sitting marginally above the Cboe’s February futures contract $8,410 at the time of writing.
The relatively upbeat sentiment at the start of the week was reflected in Bitcoin’s dominance, which was down to 34.4% this morning.
For the day ahead, we will expect Bitcoin to face strong resistance at $8,570, with investors likely to be conscious of where the February futures contract sits ahead of Wednesday’s settlement. As the Asian session comes to a close, the prospects of any negative regulatory chatter will have eased, which will be a positive. Any fall back towards $8,100 could see Bitcoin test its first major support level of $7,830, though the news would have to be quite dire for sentiment to shift to a sell-off that would pull the rest of the cryptomarket down with it.
Elsewhere, Ripple leads the way, gaining 5.49% on the day, with Stellar Lumen up 4.55%, the pair tending to see the biggest moves based on sentiment, which suggests that these are the two major cryptos that will see the most upside should cryptomania return.
The Cryptomarket bulls are certainly doing their best to induce another rally, with talks of Bitcoin hitting $25,000 and even $100,000 still doing the rounds in spite of the volatility that has gripped the cryptomarket through the first 6 weeks of the year.
The projections are certainly looking a little farfetched for now. We have seen manipulation sink Bitcoin and the broader market, with Bitcoin having hit a 2018 low $5,920.72 last Tuesday. So, until there is some greater oversight to address market manipulation and hacking, not to mention greater clarity on regulator intentions, even $10,000 looks to be a stretch at the moment.
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This article was originally posted on FX Empire
