Bitcoin has again been leading the way for cryptocurrencies, increasing its share of the broader market as prices climb. The world’s leading cryptocurrency was trading at $5,450.46 (£4,225) at 10.00pm, Wednesday, April 24, according to cryptocompare.com – its highest since November 2018. And a leading cryptocurrency analyst at eToro believes the future now looks bright for bitcoin.
Simon Peters, analyst at eToro said: “The stars are aligning for a Bitcoin bull run.
“The short-term moving average for the price of Bitcoin has finally moved above the longer-term average, which is often referred to as a Golden Cross, so investors are starting to believe that we might just be approaching a new phase for the price of Bitcoin.
“Hitting the $6,000 mark shouldn’t be the focus though, the real question is whether we carry on above $6,000.
“Previously $6,000 has been a major support level, so it’s likely we will see a bit of a sell-off if $6,000 is reached.
“However if that sell-off is overcome, and the price remains consistently above $6,000, there would be some serious momentum and belief that we could see the price carry on rising over the next year to around 60-70 percent of the all-time high.”
At this point, bitcoin was up 4.4 percent for the week, while its cryptocurrency competitors remained in the red.
Why is bitcoin outperforming altcoins?
John Todaro, director of digital currency research for TradeBlock, has described bitcoin as “most important asset in the digital currency space.”
He added: “”When it performs well, the best risk/reward is arguably to own Bitcoin over any other digital asset.
“This doesn’t necessarily mean BTC’s returns will be higher, just that the probability weighted return is the highest given that BTC is so far ahead of any other digital asset in terms of adoption and use cases,” he added.
There has been a generalised optimism pervading the cryptocurrency sector this month.
Jeff Dorman, chief investment officer of asset manager Arca explained: ”If you look back to early April, when BTC rose 25 percent in a day, every other digital asset rose as well.
“But, since that day, bitcoin has remained well bid while every other asset has slowly begun to decline due to a rotation out of ‘altcoins’ and into BTC.”
Mati Greenspan, eToro’s senior market analyst, succinctly summed-up the situation.
“Altseason is over and the market is now consolidating back into Bitcoin,” he wrote.
Studies by YouGov released at the close of last year reveals awareness of Bitcoin has hit new heights.
Bitcoin led with an awareness percentage of, while its closest contender Ethereum trailed far behind.
Another study, of U.S. college students, shows a significant proportion have owned or own Bitcoin and a quarter wish to learn more about crytpocurrencies.
Notably, the mix of degree seekers was well diversified.
Published at Wed, 24 Apr 2019 21:23:00 +0000