Why Bitcoin (BTC) is Just Beginning to Break Out

10:54 04/07/2019

Bitcoin [BTC] is back above $5,000 with plenty of momentum. 


After a poor outing in 2018, the coin is starting to show signs of life after a Bitcoin whale bought nearly $100 million of BTC in recent weeks.  And, if you take a look at the number of Google searches for BTC, they’re spiking to levels last since in November 2018.


Even better, the worst may be over for the coin, says Fundstrat’s Tom Lee.  In fact, he views the BTC break above the 200-day moving average as a bullish sign. 


“Based on bitcoin's trading history, a move above the 200-day moving average for bitcoin is meaningful statistically,' Fundstrat said, as quoted by Forbes. 'When bitcoin is above its 200-day moving average its win-ratio is 80% compared to a mere 36% when it is below its 200-day.  Six-month forward returns average 193% compared to a measly 10% when below its 200-day moving average—hence, being above the 200-day moving average is a big deal.'


At the same time, we may be seeing the initial innings of FOMO, or the fear of missing out.


For those of you unfamiliar with the term, FOMO simply refers to the fear of missing out on a potentially profitable opportunity.  No one wants to be left behind.  Fear of missing out will make investments attractive, says billionaire Michael Novogratz.


After breaking above heavy resistance dating back to December 2018, the coin could refill its bearish gap around $6,100, near-term.  Keep an eye on it.  We could be about to witness quite a rally in the cryptocurrency.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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