The biggest cryptocurrency to date, Bitcoin, had an excellent start of 2020 by skyrocketing by 35% to reach highs of $9,425 per BTC. The leader of the pack in terms of cryptocurrencies managed to climb up from the $6,400 lows in the last days of 2019. Over the course of the past week, Bitcoin recorded a 15% price increase, boosting the market capitalization and trading volumes of the entire crypto sector.
Crypto analysts believe Bitcoin has entered a bullish run, as the latest price increase indicates Bitcoin would overcome the $10,000 resistance level. Some crypto experts even consider the chance Bitcoin to skyrocket in the six-digit sector, which would eventually cement cryptocurrencies as a fundamental financial force.
New York-based research company Fundstrat Global Advisors clarified that Bitcoin managed to cross above the 200-day simple moving average (SMA) line, which indicates bulls are in charge of the market.
The ex-executive at JPMorgan and co-founder of Fundstrat Global Advisors Thomas Lee further explained that Bitcoin’s crossing over the 200-day SMA is a “positive milestone for the currency, and it’s a great start for Bitcoin in 2020”. Previously, the company stated its optimism about Bitcoin jumping with 100% of its price to trade well above $15,000.
Other crypto experts, like Sawcruhteez, predicted Bitcoin’s surge weeks ago. According to Sawcruhteez, Bitcoin formed what is commonly known as a “cup and handle” formation, which is a sign of possible strong breakout from the current price point.
In the case of Bitcoin, the cup and handle formation indicates a bullish run up to around $11,500 before any significant correction, which is a 25% increase over the current Bitcoin price of $ 9,359.57. Other crypto experts, such as Mati Greenspan, explained why the crypto community is expecting such a breakout. It seems the downward channel, formed between the highs and lows over the past six months, is no longer a threat for the world’s #1 crypto.
“Get your rockets & Lambos ready, we goin to da moon,” Mati Greenspan wrote on Twitter, confirming the breakout over the 200-day SMA line. Joseph Todaro, another prominent crypto trader, and expert, showed a different metric perspective to the bullish run – the Golden cross. A golden cross occurs when the 200-day exponential moving average is crossed with the 50-day moving average. Also, the 7-day Moving Average Convergence Divergence (MACD) line got into the green, further implying that the bulls are in control.
The entire crypto sector responded to Bitcoin’s price increase, with most of the top-50 currencies marking 20-40% price increases in January. Ethereum went up with over 40%, Ripple marked a 35% price increase, while the controversial Bitcoin SV made a whopping 479% price boost. Bitcoin SV started 2020 with a price of around $92 and currently trades for $441.2.