Bullish Bitcoin has managed to hold it’s upward trajectory, starting the week well above the all important $5,000 mark – the first time we have seen this all important coin reach such levels for a very long time – November 2018 to be specific. With all the major coins are sharing in this new injection of positivity, there is a real sense of optimism in the wider cryptocurrency ecosystem.
There are also fears, however, that the latest highs are triggering overbuying which could threaten the stability. Based on current analyses, there are some striking similarities to the 2017 bull run which saw Bitcoin soar to $20,000 before crashing out in spectacular fashion – something that everyone would agree is desireable to avoid a repeat of.
So what’s behind this recent surge? Truth told, it is hard to pinpoint any one specific cause. As Bloomberg Intelligence analyst Mike McGlone so eloquently put it –
“The market got so compressed, volatility was so low, it just went poof! It broke out. It was released from the cage. Now it’s a question of duration and I suspect when you have such a massive bubble, you’ll always have an overhang of people who need to sell.”
Given the charts over the last two years, it is far too early to speculate as to what might be next for Bitcoin or indeed the other major players, and there is always the risk tht everything bursts once again, but there seems to be sufficient restraint and a greater level of maturity this time round to avoid a repeat of past events – or at least avoid seeing such dramatic down turns. I sure hope so anyway – after all, last week I saw a profit on my (not too impressive) cryptocurrency portfolio for the first time ever!