Bitcoin, the largest cryptocurrency by market cap, has risen rapidly in the last 24 hours to hit the $8, 000-mark characterized by a rapid spike in open interest on futures contracts from CME and Bakkt.
Bitcoin price has increased by more than eight percent since January 3rd with some analysts attributing the rise to the Middle East crisis. Some analysts however argue that the Bitcoin $136 billion market capitalization is too small in size and volatile to appear to the broader base of investors, and that instead, more is at play.
After dropping to a low of $6, 400, traders are expecting an inverse head and shoulders pattern normally formed when an asset is showing a bottom-like structure.
To many crypto analysts, the 8% surge is just the beginning and the growing bullishness amongst investors and analysts is a technical signal that historically is followed by immense bullishness.
If recent events are anything to go by, then it is also logical to expect these gains to be followed by massive retraces.
Most analysts agree though that the long-term bullish trend is imminent, but recent gains may be short-lived. The upcoming halving, the 1-million daily active bitcoin addresses, and a new high hash rate, all point to a long-term bullish trend.
If anything, analysts and traders agree on a hodling approach to bitcoin investment in 2020.
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