Bitcoin to test key $6,000 mark, setting the market direction for the year
Bitcoin will soon put the vital $6,000 price support to the test, bolstering confidence in the wider crypto market.
Over the past 24 hours we’ve seen the price of Bitcoin increase by 4.3 per cent, whereas in the past month the world’s largest cryptocurrency by market capitalisation hiked close to 40 per cent from $3,900 to $5,630.
As I told Newsmax amongst others, looking at technical analysis, as well as long-term indicators such as the Moving Average Convergence Divergence and the Exponential Moving Average, we can see Bitcoin is preparing to reach the $6,000 mark.
Additional bullish momentum for Bitcoin could also be driven from a so-called ‘golden cross’, when the 50-day moving average moves past the 200-day moving average.
It would appear the wider sentiment is certainly turning more bullish amongst crypto traders. Indeed, even the most zealous bears look to be changing their stance.
So much so, in the coming months we can expect to see a large number of retail and institutional investors who have been sitting on the outside now investing in cryptocurrencies.
A new breakout by Bitcoin of $6,000 could drive an accumulation period and enhance confidence in the wider sector.
When this increase in confidence is in place, cryptocurrencies will have no limits. They are becoming increasingly accepted by both retail and institutional investors as the future of money.
I recently said it would be a reasonable assumption to see the price of Bitcoin reach $7,000 in the next couple of months. The forecast $6,000 test is, naturally, a big step in reaching this point.
Indeed, the fundamentals of Bitcoin and digital currencies in general, are stronger than ever before.
Although it’s still too soon to say with some accuracy that Bitcoin is now in bull market territory, the evidence for this tendency is growing every day.
As soon as the $6,000 mark is reached, it will prime the positive path for the remainder of the year.