Today’s Bitcoin price (BTC) pull-back has limited downside potential considering its improving technical and fundamentals aspects. Bitcoin trades below the $9000 mark today after peaking around a one-month high of $9700 early in Yesterday’s trade. Bears have successfully hindered the bull-run amid support from short-sellers and the unenthusiastic environment in stock markets.
The entire cryptocurrency market remains unstable over the last 36 hours. Altcoins fell at a faster pace than bitcoin. Ripple (XRP), Ethereum (ETH) and Bitcoin Cash (BCH) plunged at a double-digit rate yesterday, and they are making sideways moves today.
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Analysts, however, aren’t giving much importance to the price drop. They believe trading environment for cryptocurrencies will continue to strengthen in the coming days. Goldman Sachs decision to hire a cryptocurrency trader, increasing acceptance from global regulators and the latest Reuters survey is adding to bulls sentiments.
Bitcoin expert Tom Lee admired Goldman Sachs’ strategy to hire a cryptocurrency trader. Lee said, “It is a sign that a major investment bank believes that there is enough ‘clarity and custody and money to be made’ within cryptocurrencies.”
Some analysts are of the opinion that bitcoin could face stiff resistance from short-sellers around the $9,000 – $10,000 level, but is set to hit $11,000 immediately once its price surpasses those resistance levels.
“Bitcoin’s recent price rise is just the first step in an eventual recovery. Many of the underlying fundamentals supporting a higher price remain strong, and demand is rising again,” Trevor Gerszt, CEO, of cryptocurrency investment firm Coin IRA said.
Technical analysts are also signaling limited downside for bitcoin price. They claim underlying bullish trend remains solid; they believe BTC shows upside potential as its 50-day MA remains above the 100-day MA and is trading above the descending channel. The upward move in the 100 and 200 day-moving-averages also mirror the potential for a bullish trend.
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