The Bitcoin price recently fell as low as below the $7,000 mark, after which it rebounded back to $7,200. However, over the past 24 hours, the price of Bitcoin ahs spiked and stabilized in the $7,500 region. Naturally, the entire cryptocurrency market followed the dominant cryptocurrency’s upward price trend, leading most of the major cryptocurrencies to increase by 3% to 10%.
No one knows if the Bitcoin price will continue to increase this week. However, what we know is the fact that this is still not a bullish run. So, it is likely possible that Bitcoin dips below the $7,000 region before running on a strong rally to the $8,000 limit eventually. This would mark the start of a proper mid-term bull run.
Still, many analysts are worried that if Bitcoin doesn’t sustain its momentum in the $7,500 gap, it will likely move back down to the lower end of the $7,000 region and even fall down to mid $6,000.
According to the prestigious UK college Warwick Business School professor of finance Daniele Bianchi, the hype and emotion may be driving the Bitcoin price patterns lately.
“There is research showing limited similarities between Bitcoin and gold, but looking across the 14 biggest cryptocurrencies the high volatility of their price means that they can hardly be seen as a reliable savings instrument in the short-term, let alone the long or medium term,” said Bianchi presenting his findings in a study entitled “Cryptocurrencies as an Asset Class: An Empirical Assessment.
Do you think the recent increase marks the start of a new bullish run by Bitcoin?
Let us know in the comments!
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]