Weekend trading for Bitcoin has been bullish but things really started to take off during Asian trading this morning. As BTC tapped a twenty four day high, it is now only $2k away from its 2019 peak and reaching it this week is not out of the question.
BTC Taps $11,800
Bitcoin has not looked back since it passed the psychological $10k barrier late last week. Over the weekend it hovered just below $11k but during Asian trading this morning BTC surged almost 10 percent powering up to a high of $11,800. The move has sent prices to a 24 day high as volume surged 50 percent to over $21 billion.
Total crypto market capitalization has climbed back above $300 billion again but as usual, the altcoins are not sharing the love. There is now only $2,000 to go before a new 2019 high is made and BTC could be on track to do that this week.
Bitcoin is currently at resistance with the next being at $12,400. After that it could surge to $13k and then on to surpass its previous peak. It is also the seventh day in a row that BTC has registered a green candle which is a strong indication that the correction is over and a new uptrend has formed.
Factors and Trends
The fundamentals appear to be originating in Asia at the moment. China’s central bank has devalued its currency by setting its daily reference rate for the Yuan/Dollar at 6.92 this morning. The move has been part of ongoing efforts to counter renewed trade tariffs imposed by the Trump administration.
The escalating trade war clearly has the People’s Bank of China rattled and its response was clear today. As a result the Yuan hit a ten year low against the greenback which appears to have driven an exodus into Bitcoin.
With the global economic slowdown and Sino-US trade frictions heating up, safe-haven assets are highly sought after. Currently, countries are seeking foreign exchange reserves other than the US dollar, and gold is the best choice. According to the April original data released by the International Monetary Fund (IMF), since the beginning of 2019, central banks around the world have purchased 207 tons of gold, the highest level of central bank gold demand since the central banks became buyers in 2010.
As the bitcoin of digital gold, its scarcity has the ability to resist inflation. As the global situation heats up, the risks of holding shares, legal currency and national debt continue to increase, and Bitcoin as an independent system gradually begins to embody the function of hedging. At present, the more unstable the international situation, the faster the rise of gold and bitcoin will occur.
Gold investor Peter Schiff has turned bullish on Bitcoin and tweeted on what could be driving the current momentum.
“If you aren’t paying attention to what’s going on with China’s banks and currency, Hong Kong’s imminent takeover, Japan’s central bank albatross, the ECB’s downhill slide, and our domestic pressures to print money and cut rates, this is your wakeup call.”
If this momentum continues, which is likely at the moment, BTC could revisit its 2019 before the week is out, and even surpass it.
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