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3 Reasons Bitcoin Will Race Toward a New Record High at $20,000

3 Reasons Bitcoin Will Race Toward a New Record High at $20,000

3 Reasons Bitcoin Will Race Toward a New Record High at $20,000The bitcoin price’s latest upside attempt brought the $6,000 resistance target closer. But can the asset extend its bullish momentum towards $20,000? | Source: ShutterstockBy CCN: The bitcoin price surged as much as 7.60-percent on Friday to establish a new 2019 peak at $5,796.93. The uptrend pushed bitcoin’s year-to-date rally to an impressive 54.08-percent. At the same time, it brought the asset’s total recovery to an astounding 82-percent and set the cryptocurrency well on its way to a fresh record high.Here are three factors that indicate the bitcoin price has not only found a bottom but is also well on its way to smashing through the $20,000 peak it set in late 2017.Reason 1: Moving Averages Mimic Historical Pattern from 2015Yesterday, Factor Trading author Peter Brandt suggested the bitcoin price could hit $19,800 in the future.He backed his prediction using a weekly moving average indicator, noting that it was now trending below the bitcoin spot price.The last time such a move took place was in November 2015 and preceded bitcoin’s triumphant march from $340 in 2015 to a whopping $19,800 in 2017.The last time Factor’s benchmark weekly MA was in the current profile of turning from down to up was in Nov 2015 just as $BTC began its move from $340 to $19,800. pic.twitter.com/uFJSkV9NwM— Peter Brandt (@PeterLBrandt) May 2, 2019Robert Sluymer, a technical strategist at Wall Street strategy firm Fundstrat, also believes that bitcoin is pounding into a bull market.The financial expert said the asset could initially go through a pullback towards its 200-weekly moving average following its most recent push toward $6,000.But after that, it could enter a mammoth accumulation phase which, as supported by Fundstrat co-founder Thomas Lee, could push the price toward $20,000.BITCOIN PRICE NOW ABOVE 50-WEEKLY MOVING AVERAGE | SOURCE: TRADINGVIEW.COM, COINBASEThe latest jump also closed the bitcoin price above its 50-weekly moving average, as shown via the blue curve in the chart above.The 50-WMA historically signaled a strong bullish bias whenever the price was trending above it. Bitcoin crashed below the 50-WMA in May 2018 during a wild downside market action, after which the price careened as low as $3,100.With bitcoin now above the 50-weekly MA, the probability of bull run is high.Reason 2: Relative Strength Index Rages BullishBITCOIN’S WEEKLY RSI IN BULL ZONE | SOURCE: TRADINGVIEW.COM, COINBASERecently, bitcoin’s weekly Relative Strength Indicator jumped above 53.65, its highest level since October 2015.The level, as indicated via a red horizontal line in the chart above, so far served as a yardstick to measure a bull or a bear trend.When it jumped above 53.65, the buying sentiment in the bitcoin market improved. And when the RSI went below that mark, as it did during the January 2018, it triggered sell pressure.Reason 3: The Bitcoin Price Formed a ‘Golden Cross’BITCOIN FORMED GOLDEN CROSS, AND AN UPSIDE RALLY ENSUED | SOURCE: TRADINGVIEW.COM, COINBASEA Golden Cross is achieved when an asset’s short-term moving average jumps above its long-term moving average.The bitcoin price witnessed one of these formations back in October 2015 when it was trading near $300. Later, the asset underwent one of its longest bullish periods, which eventually brought the price close to $20,000. It once again formed a Golden Cross in April 2019, signaling a potential long-term upside scenario.All three of these factors bolster the argument that the bitcoin price will retest the $20,000 mark, perhaps even sooner than many bulls expect. For now, bitcoin is trading at $5,700. About The AuthorYashu GolaYashu Gola has been working as a cryptocurrency analyst/journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.
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Bitcoin Beats Other Cryptos in ‘Smarter’ Bull Market, Says Billionaire Investor

Bitcoin Beats Other Cryptos in ‘Smarter’ Bull Market, Says Billionaire Investor

Bitcoin Beats Other Cryptos in ‘Smarter’ Bull Market, Says Billionaire InvestorBitcoin’s dominance will only be more pronounced in this bull market and that’ll show in its value, according to Mike Novogratz. | Source: ShutterstockBy CCN: Mike Novogratz, the billionaire CEO of Galaxy Capital and a former hedge fund manager at Fortress Investment Group, believes alternative cryptocurrencies, or altcoins, will be outperformed by bitcoin in the bull market.Not this time. Market getting smarter. $btc will outperform.— Michael Novogratz (@novogratz) May 19, 2019The statement of Novogratz comes after the bitcoin price risen by more than 115 percent year-to-date against the U.S. dollar, leading the crypto market to add $124 billion to its valuation.Will bitcoin continue to outperform altcoins?Historically, altcoins have relied on the price trend of bitcoin and have rarely demonstrated independent price movements in extended time frames.Altcoins typically surge in value when the bitcoin price shows stability at a tight price range, leaving investors to take high-risk and high-return options over the dominant cryptocurrency.The optimism towards bitcoin, despite the emergence of sophisticated altcoins, is well founded due to the involvement of major financial institutions in the likes of Fidelity and TD Ameritrade building infrastructure on top of bitcoin.Fidelity and ICE, the parent company of the New York Stock Exchange, are initially launching custodial services for bitcoin, targeting institutional investors.According to TD Ameritrade’s executive vice president Steven Quirk, tens of thousands of clients at the brokerage already trade crypto assets in some capacity.But, traders suggest that if the sentiment around the crypto market remains overwhelmingly positive, investors will eventually explore alternative opportunities for high-return trades, which then may fuel a rally for altcoins.One cryptocurrency trader said that bitcoin is likely to climb further throughout 2019, triggering a healthy market for altcoins:The rest of this year will be characterized by rapid BTC advances, healthy corrections and periods of sideways price action, when altcoins will fly. Put that nonsense rhetoric about waiting for capitulation and still not making our bear market lows away. Wrong cycle.Full on degen altcoin season still on track for June. Next few weeks, as BTC finds a range, we’ll continue to see the popular altcoins bounce back 1st. In June, all altcoins across the board will bounce back hard. More disbelief on its way.The concern of some investors like Novogratz on the prospect of a booming market for altcoins is that many retail investors were hurt in the 2017 bull market taking high-risk trades, trading against stable assets like bitcoin.As the market matures and as investors in the market become smarter, Novogratz indicated that the appetite for altcoins could decline.The crypto market has added more than $100 billion to its valuation year-to-date (source: coinmarketcap.com)Similarly, Jeff Sprecher, the chairman of the New York Stock Exchange, said in November 2018:Somehow bitcoin has lived in a swamp and survived. There are thousands of other tokens that you could argue are better but yet bitcoin continues to survive, thrive and attract attention.At the time, Sprecher emphasized that Bakkt, a futures market operator created by NYSE’s parent company ICE, will focus on building a regulated infrastructure for bitcoin first ahead of other assets.Sentiment is generally positiveOn May 17, as CCN reported, the bitcoin price plummeted by 18 percent within hours following an unexpected 5,000 BTC sell order on Bitstamp that led prices of bitcoin and ethereum to crash on BitMEX.The market absorbed the abrupt decline in the bitcoin price fairly well, indicating that the confidence in the near-term price trend of crypto assets remains strong.While investors have cautioned that bitcoin has shown oversold conditions in recent weeks as it surpassed key resistance levels, the momentum of the asset could prevent it facing a large correction some expect would occur in the near-term. About The AuthorJoseph YoungHong Kong-Based Finance and Cryptocurrency Analyst. Contributing regularly to CCN and Hacked. Providing unique insights into the crypto and fintech space since 2012.This article was edited by Samburaj Das.
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Bitcoin’s price has pumped beyond its ‘intrinsic value,’ JPMorgan says

Bitcoin’s price has pumped beyond its ‘intrinsic value,’ JPMorgan says

Banking behemoth JP Morgan Chase & Co. has taken another shot at Bitcoin, BTC claiming the cryptocurrency‘s latest rally has pushed its price beyond its “intrinsic value.”
“Over the past few days, the actual price has moved sharply over marginal cost,” JPMorgan analysts wrote in a note obtained by Bloomberg. “This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

To come to this conclusion, the JP Morgan team treated Bitcoin as a commodity, calculating its “cost of production” based on a number of factors, including estimated computational power, electricity expense, and hardware energy efficiency.
“Defining an intrinsic or fair value for any cryptocurrency is clearly challenging,” the analysts continued. “Indeed, views range from some researchers arguing that it has no fundamental value, to others estimating fair values well in excess of current prices.”

Bitcoin‘s price briefly dropped from almost $8,000 to $7,050 on May 17, after $250 million of long positions got liquidated on BitMEX. Since then, BTC has surged back to $7,893 at the time of writing.
By now, JP Morgan has made a habit out of thrashing Bitcoin and cryptocurrencies. Back in 2017, CEO Jamie Dimon called the currency a “fraud” – a statement he later softened, suggesting he simply doesn’t care about Bitcoin. Since then, JP Morgan launched its own blockchain-based “digital currency,” which was neither a cryptocurrency, nor a stablecoin.

Published May 20, 2019 — 11:54 UTC

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