In 2018, Bitcoin appeared a lost cause to many people, but it seems that there is room for it to return stronger than ever. Recently, the BTC price has gone over $5,000, which is the first time since November 2018. Many investors start suggesting that Bitcoin (and cryptocurrencies in general) can perhaps return to their glory days. Could this be the beginning of a new upward swing or is it just a temporary tick in the price caused by something? Will this upward mode last for a long time and what can we expect from Bitcoin in the future?
BTC price is ready for the big time?
Bitcoin’s highest price in USD was approximately $20,000 back in December 2017. Since then, the price has been slowly declining. There were a couple of short upward swings in 2018, but that was a far cry from reaching the Q4 2017 price. However, starting in November 2018, the price of Bitcoin began to decline, hitting almost $3,000 in December 2018, and that was the lowest price since the primary upward mode.
What followed was a short period of stagnation that lasted for three months straight with the price hovering between $3,000 and $4,000 throughout December, January, and February. However, we were able to witness a gradual upward mode in March as the price broke the $4,000 ceiling by the end of the month.
As soon as we entered April, a miracle happened, and the price of Bitcoin suddenly jumped above $5,000. In other words, the price was up by almost $1,000 in just a couple of days, which is an upward tick we were not able to see for a very long time when it comes to cryptocurrencies.
Could this be a transition from bear market to bull market? Is this the change that all the traders have been waiting for a long time? The right answer is that nobody actually knows, but we can take a look at the possible reasons that made BTC surge back to $5,000.
It’s just how the market works
If you ask professional traders who have extensive knowledge in this area, they would claim that it is just how the market works. There are rules which apply to it that can, in a way, foreshadow the upcoming upward move.
Many professionals analyzed charts and concluded that Bitcoin closed above its moving average (MA) of fifty weeks for the first time in a year, and that it is a sign that the bulls could overtake the market.
Many agree that this could be also caused by purely technical changes such as the announcement of mining reward halving. The date when this is expected to happen was set to May 2020, which means that many professional investors started planning their strategies differently.
Is it the April Fools?
Some people believe that it was the April Fools that made the price of Bitcoin go up. Finance Magnates announced in the article that financial regulators finally decided to approve Bitcoin exchange-traded funds (ETFs).
Many people believed that this was true and started acting, thus affecting the price of BTC. However, experts think that this is highly unlikely. Yet, it is one of those things we will never be able to know as there is no way to determine the direct relationship between the news and the behavior on the market.
Speaking of ETFs, this could affect the market in the future when the financial regulators really decide to do something about them. In fact, many reports suggest that the next step taken in this direction should actually happen in May 2019. In other words, make sure to follow news about this as there is a possibility that the price of Bitcoin will be affected by the decision.
Bitcoin is the most popular cryptocurrency in the world, and other cryptos are still profoundly affected by it. In other words, the change in Bitcoin’s price has been followed by the change in the price of other cryptos, and this is something that is happening again.
A single unit of Litecoin was approximately $60 on April 1, while three days later the price went up to $80. Last time Litecoin was above $80 was in July 2018, which means that things got even more exciting with this cryptocurrency.
The same upward tick exists in the ETH/USD pair as the price of a single Ether jumped by approximately $23 in the period between April 1 and 2. However, there was a slight decline visible on April 3 as the price dropped from $164 to approximately $161.
Bitcoin Cash is the closest ally to BTC (or is it Bitcoin’s mortal enemy?) and the graph depicting its price over time is pretty similar to Bitcoin’s graph, except for the fact that the numbers are smaller in general. Therefore, the change in price for BCH also happened in a couple of days. On April 1, the price was $167, and it jumped to $301 in just two days.
It is still very early to jump to conclusions as the upward mode has been on for just a couple of weeks. In fact, we wouldn’t even dare call it an upward mode yet. If this trend continues in the future, then it is definitely on.
On the other hand, it is difficult to predict the future. The professional investors and analysts could odd out the impossible, but they certainly cannot state what the most likely scenario is for Bitcoin and other cryptocurrencies. Naturally, we hope that the price will go up yet again, and a couple of months ahead of us are going to be very exciting for the crypto sphere. Nevertheless, crypto enthusiasts should not have high hopes as the price could move in any direction from this point on. All we could do is follow the latest news, and carefully observe the price changes in order to know when to act.
About the Author
As an expert on Bitcoin-related topics, I’ve found myself as a Journalist at Cex.io – cryptocurrency exchange. I’m working on articles related to blockchain security, bitcoin purchase guides or bitcoin regulations in different countries.