Bitcoin Rally Has the Crypto Universe Asking 'What Happens Next?'
Bitcoin (BTC) has gone up over 4.6% in a day, and nearly double that in a week. Popular crypto analysts and traders are discussing this jump, but not many seem convinced that this particular rally will last, let alone lead to new all-time highs. (Updated at 16:58 UTC: updates in bold).
The number one coin by market capitalization has made a sudden jump on January 6, nearing the USD 8,000 mark and at the time of writing (UTC 9:37), it is trading at USD 7,888 - a price it hasn't seen since November last year.
Most other coins in the top 100 by market capitalization are green as well against USD, but almost all are in red against BTC. Even XRP, one of the best performers in the past 24 hours, has turned red against bitcoin.
BTC price chart:
Crypto traders and analysts have been discussing this jump since yesterday, offering their opinions on its meaning and future development, and though some see BTC flying higher this very year, it would seem that many people are not convinced that this is the start of that rally that would take the coin to the moon. But that's not to say that they're not bullish, with many advising people to hodl.
"What's encouraging about the breakout is that it has come with strong volumes and drastically improved sentiment. Messari Crypto is showing that the top 10 exchanges have traded more than USD 1 billion worth of bitcoin in the last 24 hours, a figure that we haven't seen in a few weeks now," according to Mati Greenspan, the founder of Quantum Economics.
One of the people who does think that an all-time is possible in 2020 is crypto trader Ronnie Moas, who finds this a realistic view given the research on it he says he's done. "[USD]7,810 has now bounced 19%...more than [USD]1,300," he writes. "Since technical 'analysts' warned you of a 'death cross' three weeks ago. We are now just 1% away from a level that we have not seen in seven weeks. Buy and Hold. Add on Dips," says Moas, predicting the 2020 price target to be USD 28,000. He adds that altcoins will not outperform BTC as they've been "roasted and toasted" with 98% of them exposed as scams. According to the poll he posted, asking people how much of their BTC do they plan on selling at USD 15,000-20,000, more than 68% responded with 0-25% of their BTC, while 20% said it'd be 75-100%.
On the other hand, Peter Schiff, a prominent gold investor, unsurprisingly, doesn't find this rise significant, saying that gold too is up by a similar percentage, "only with significantly less downside risk," and asking: "If this is the best rally Bitcoin can muster, how will it ever hit 50K, let alone 1 million?" Morgan Creek Digital co-founder Anthony Pompliano, who debated Schiff before, replied to that "Now do the last 5 years," referring to the massive 2,603% difference from BTC's price in January 2015.
Crypto researcher and analyst Willy Woo commented on what he called "the largest miner capitulation LTC has ever faced," saying that the Litecoin Difficulty Ribbon was in recovery, which should set up a bullish breakout of the bearish channel. "I wouldn't be surprised if LTC to lead a bullish breakout of BTC," he said.
Speaking of miners, according to major Bitcoin mining pool BTC.com, the Bitcoin mining difficulty is up 6.57% seven days ago and is expected to go rise another 7.89% during the next adjustment in about a week. Popular crypto analyst PlanB commented on the difficulty adjustments as well, showing positive adjustments (red dots) and negative adjustments (blue dots) in relations to the price since 2011.
So it begins ... pic.twitter.com/jhxVQjUD5F— PlanB (@100trillionUSD) 6 January 2020
Quite a few people online thought that this rise in BTC price may be connected to the recent US missile strike in Iran, assassinating Major-General Qassem Soleimani. However, Joe Weisenthal, editor at Bloomberg, referenced the general greenery in the market today, with a number of coins previously rising higher than BTC, and he asked if BTC indeed jumped due to the geopolitical tensions causing a bid to save havens, "how do you explain the fact all kinds of other silly coins are doing even better?" Among the answers people gave is that altcoins are treated as high beta and that the situation needs to be looked at from the one-year, not one-day perspective.
Another popular crypto analyst and trader, Josh Rager, commented on the market as well, saying "BTC at resistance. Want to see price push its way through this key area to break out of this range and for continuation to the upside."
Meanwhile, the Crypto Fear & Greed Index is currently standing at 40, still indicating "fear."
Learn more: How Good Is Mike Novogratz In Guessing Bitcoin's Price?