Bitcoin (BTC) price has spiked 4.2 percent in the past 24 hours (as of Friday 9:28 UTC), inching closer to retesting $7k.
Meanwhile, Galaxy Digital CEO Mike Novogratz has told CNBC that he expects the price of Bitcoin to hit $20k this year.
As per data on Coin360, BTC/USD is exchanging hands at $6,950. The coin has a bullish outlook as buyers eye a breakout above $7,000, which could open up another rally to $8,000. The latest push follows a brief lull below $6,600 after it dropped from a high of $7,250 on Thursday, April 2.
A sanguine crypto space might see buyers take charge and help bitcoin recoup most of the losses suffered during the mid-March sell-off.
Bitcoin rallies to suggest decoupling
Amid the COVID-19 pandemic and the resulting economic crisis, BTC took a dive to lose over 50% of its value on March 12. The pioneer cryptocurrency tanked from prices above $8,000 to hit lows of $3,800.
After mirroring moves within the equities markets as the coronavirus spread, bitcoin has in the last two weeks consolidated above $6k as traditional markets collapsed. The Dow and S&P 500 are both bearish despite a brief uptick on Wednesday.
The increased buying seen this week in the bitcoin market is indicative of growing confidence within the bitcoin community. Prices could potentially rally past $7,000 to $8,000.
Analysts are pointing to the massive $4 trillion liquidity effort by the Federal Reserve and such other moves by governments across the globe as likely to benefit Bitcoin. Already, BTC’s price showing in the 2nd quarter of 2020 is conforming to historical performances.
Bitcoin price data over the years shows that Q2 is historically stronger and many of the signals for BTC staying in the green this quarter are there. Above that, BTC could hit new all-time highs.
Bitcoin is printing higher lows and lower highs on the daily charts. The pennant pattern could open up prices towards $7,500 and $8,000 (prices last seen before the most recent sell-off.)
One driver of a positive outlook is the fact that bitcoiners are hodlers and are buying the dip. There is also the upcoming bitcoin “halving” which could push prices higher. Observers have also pointed to the entry of new money coming from big investors who want to know about bitcoin as they seek to hedge against high-risk stocks.
Novogratz says BTC should Hit $20k
According to Galaxy Digital’s Mike Novogratz, bitcoin’s price is likely to hit five figures within the next few months. Above that, BTC could rally to record a new all-time high above $20,000 in 2020.
Novogratz told CNBC Closing Bell:
“This is the year for bitcoin,”
He, however, added that if the top crypto failed to surge to these levels, he could as well “hang [his] spurs.”
A Kraken research recently predicted that the “Great Wealth Transfer” will see BTC hit $350k by 2044.
BTC price pullback
Despite the strong showing seen over the past two days, analysts say a BTC pullback in the short term cannot be ruled out. If the uptrend reverses, sellers may gain an upper hand. A downtrend will push prices to support levels $6,330 and below that $5,800 and $5,000.
Top altcoins are also in the green, with Ethereum (ETH) up 5.6% to trade at $146 to the dollar. Bitcoin Cash (BCH) is up +5.7% at $240 while XRP is +2.5% at $0.18. Binance has confirmed it acquired CoinMarketCap; BNB is up by 4.5% to trade at $13.45 as of press time.
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