Thursday, December 1, 2022

Bitcoin Price Roars Back After Weeks in the Dumps

Bitcoin Price Roars Back After Weeks in the Dumps

It looks like the bitcoin price could be making a comeback. In the last week, the price has made huge leaps upward, going from the $6,000 USD range to $8,100 at press time. However, the markets seem to have hit some resistance at $8,000, so the question is: will the recovery hold?

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The Bitcoin Price Roller Coaster Continues

So far, the bitcoin price has seen nothing but volatility in 2018, after falling from astronomical highs of $19,000 and above in December 2017. Since falling below $10,000 earlier this year, bitcoin has spent months hovering between $9,000 and $7,000, with a few brief dips into the $6,000s

And after the bitcoin price fell below $8,000 on March 29, it hasn’t made it out of the $7,000s.

This struggle gave rise to multiple theories on the price’s trajectory moving forward, the most popular being that the digital currency would plummet to $3,500 before seeing a recovery above $10,000.

But then, the price suddenly exploded upwards, rising from the low $6,000s to $8,000 on April 12. Since the 12th, the markets have maintained a holding pattern between $7,900 and $8,100, with a few spikes both above and below those thresholds.

bitcoin price

What Caused the Sudden Spike?

For the last couple of weeks, Bitsonline’s official technical analysis had forecast the possibility of a technical reversal to the upside without an initial drop to $3,500, but it was uncertain if that would actually happen.

But then, on April 13, a day after the initial spike, the bitcoin price rose yet again in correlation with news of president Trump ordering airstrikes against the Syrian military. With the bitcoin price heavily affected by news, the recent rise could have a connection to the increasing tension in the global political arena.

Likely, though, the rise has been weeks in the making — as the charts have suggested all along. The Trump news could have acted as a trigger for more buying. However, with the initial bounce happening before news of the strikes circulated, it seems more plausible that the bounce followed weeks of changing trends.

But that doesn’t mean news can’t continue influencing the current rise. If the markets are simply fulfilling a technical trend, news could serve to bring the rally to $10,000 about prematurely, forcing a restructuring of current technical analyses.

On the flipside, news could snuff the recovery out, setting us back on a downward path to $3,500.

All we can do is wait and see. And hope that World War 3 doesn’t wipe us all out in the meantime.

What do you think will happen to the bitcoin price? Share your thoughts in the comments. 

Image via Pixabay

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