You know what they say, “If you mess with the bull, you get the horns.” The price of Bitcoin, spearheaded by the bulls of the past few months, is now beginning to expose its horns.
With Bitcoin’s bull run in full swing and the price looking to break $13,000, signs are positive on the technical side of things. Traders are keeping their eyes peeled on several key indicators which could point to the persistence of this massive bull run, which has already manifested in an over 200 percent price rise.
According to Bloomberg, the bullish tendencies over the past few days have resulted in Bitcoin shooting over its Vera Band higher price limit, which according to the report, indicates upward and downward trends. The report read,
“The move indicates a sharp rise could be on the horizon as the token continues to trade above that limit.”
This is the third coming of the Vera Band breakthrough this year, with the first two phases of this indicator taking place in February and June.
In mid-February, as the price teetered close to $4,000, this trend was seen and by the first week of April, the $5,000 mark was broken, signaling the start of the current bull run. The report added that following this first breakout, a “fresh high” was seen “shortly afterward.”
June saw the second coming of the Vera Bank surge as the price quickly jumped over $13,500 and back down, following the news coming out of Menlo Park and Libra stealing the thunder. Just three days after this indicator peaked in June, Bitcoin hit its yearly high at $13,851.
With a line being drawn in the sand, between retail and institutions as the source of this price rally, a further breakout will result in massive gains for whichever party is spearheading the rise. Edward Moya, Chief Market Strategist at Oanda Corp, told Bloomberg that blockchain and institutions have more to do with this rise than one can imagine. He said,
“Bitcoin looks like it could be coiling for a big breakout as institutional interest for blockchain technology shows no signs of slowing down. The bubble-like gains this time are driven on solid institutional interest and while security is still a big risk, it appears Bitcoin has overcome many of its initial growing pains.”
Facebook’s Libra, according to many, has had a lot to do with the sustainability of this price rise, as cryptocurrency is now being discussed as a means of providing payment support to billions of people across the world. On the institutional front, JP Morgan with their JPM Coin is also showing how a once crypto-foe can be a force of adoption.
While internally and technically the crypto-industry is seeing leaping success, external macroeconomic conditions may also be a boon. According to Arthur Hayes, CEO of BitMEX, central banks and their monetary policies of loosening funds into the economy could make its way to the cryptocurrency industry, after a quick pit-stop at “loss-making start-ups” like Uber and Lyft.
At press time, Bitcoin was up by 8.58 percent over 24 hours, trading at over $12,500 with the market cap of $222 billion.