Bitcoin Price Analysis: BTC Is Not Going to Give Up
Over the past day, BTC has been trading close to $ 9,400. The main thing that should be noted in the dynamics of bitcoin over the weekend is its ability to stay above $ 9000 and come close to a critical resistance level of $ 9500.
The RSI on the daily chart stopped the decline from the overbought zone. This movement again confirms the positive fundamentals of the market, because even after the depreciation, we did not see a massive drawdown of cryptocurrency quotes.
The price of bitcoin reached a 3-month high amid increased demand for safe haven assets associated with the spread of coronavirus from China, which led to the collapse of global stock markets and commodity prices. Chinese monetary authorities have announced the launch of a 1.2 trillion yuan bond redemption program, which could lead to depreciation of the Chinese currency and increased demand for alternative assets, in particular bitcoin.
At the weekend, Bitcoin showed minimally positive fluctuations, while altcoins quite confidently moved into growth. The dominance index had dipped to 65.3%, not reaching a few percents to the levels of December 2017: the time when the altcoin season began, which marked the beginning of a decrease in the BTC index to 33%.
Morgan Creek Capital’s CEO Marc Yusko in the recent interview told that Bitcoin is an investment in technology and innovation and should be present in every portfolio. Yusko also noted that traditional funds will increasingly include cryptocurrencies in their asset portfolios. Kaiser drew attention to the fact that portfolios in which the share of bitcoin exceeded 1% for five years brought greater returns than portfolios consisting only of traditional assets.
Nevertheless, at times of general enthusiasm, it is worthwhile to be wary of market prospects at a time when the entire crypto community will begin to predict a new historical rally. There is always a chance that it will happen. However, you need to understand that it can break off at the most unpredictable moment.