Will the Rally Continue or Will We See Sideways Movements?
2019 has been a pretty good year so far for Bitcoin. Its rate has risen sharply from $3700 on the 1st of January to $10,361 where it is trading currently. Just a few days ago Bitcoin's price dipped below $10,000 to a monthly low of $9,450 sparking a mild panic amongst investors. While crypto twitter forums are known to be over-dramatic, many have claimed that bear season has begun. This spread even more fear among investors.
Fortunately, Bitcoin has regained 6.11% of its value and is currently trading above $10,361. This development can be seen as very positive for Bitcoin as $10,000 is a key milestone for Bitcoin's growth.
It is hard to pinpoint all the factors for Bitcoin's price as there are many different factors at work. One thing that is definitely affecting the market is Asia. The Hong Kong protests, growing unrest and threat of martial law is reportedly causing many in Hong Kong to turn to Bitcoin as a form of protest. It looks like the conflict between protesters and the police in Hong Kong is only going to get worse
Another key factor is Trump's trade war with China. As we've reported previously, Trump's trade war has taken a hefty toll on the Chinese Yuan. Its rates are much lower than previous months. This caused some to speculate that wealthy Chinese investors are moving their funds to Bitcoin to avoid loss of purchasing power.
🤯 Bitfinex’s insolvency - didn’t crash the market— Dovey Wan 🗝 🦖 (@DoveyWan) May 10, 2019
😳 Binance hack - didn’t crash the market
🧐 FinCEN’s crypto doc - didn’t move the market
🤮 Sherman’s crypto ban BS - didn’t move the market
🤬 China/US trade war tension? gonna MOON 🌝 the market
The Future & Alts
Bitcoin's dominance is still unrelenting. It currently dominates 70.1% of the market. While there where times when it was higher, this is still a very high percentage. This makes it difficult to see a price surge with alts anytime soon.
With Bitcoin back above $10,000 it is less likely that we will see any major dips anytime soon. On the other hand there is no large fundamental cause for Bitcoin to spike in price either. We will likely see Bitcoin trade sideways for the next few weeks until a major development unfolds.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado