Bitcoin Price Momentum Tests The $12,000 Level In A Speedy Recovery

Bitcoin price momentum is testing the $12,000 price level after the recent ups and downs when the price reached as low as $9,700. The price is demonstrating a four percent gain against the US dollar so we take a closer look in the analysis in the coming altcoin news below.

According to the financial analyst Holger Zschaepitz at Welt, the price of the number one cryptocurrency has resembled the one of the gold since 2018. He noted:

 “Bitcoin gaining traction as store-of-value and digital gold in this crazy politicized Central Bank world w/negative or lower for longer low rates. Digital currency passes digital divide toward Gold. Both assets reached key thresholds in Jun, $10k & $1,400, now trade in tandem.’’

In 2018 during the trade war between China and the United States when things got worse, the value of gold dropped against the US dollar below the $1,000 price point. Similarly, Bitcoin also saw most of the gains during the 2017 bull market getting erased in the first half of 2018 in the 16-month brutal correction period. Some of the investors such as Chris Burniske and the ARK Invest CEO Cathie Wood, suggested previously that the bitcoin price will crash in late 2018 because many investors started laying off liquid assets. Burniske said:

‘’Cathie Wood pointed out to me that in December 2018, bitcoin was maybe more affected by the global macro scare than people realized. In such a scare, people sell their most experimental assets, such as bitcoin, and other crypto assets, exacerbated by endogenous doubt.’’

Due to the bitcoin price momentum and the appetite for high-risk traders and investments, the entire market has performed well over the past few months. Only last week, the bitcoin price experienced a 30 percent pullback and the technical analyst opened the possibility for an even bigger drop considering the magnitude of the near term drop. The largest cryptocurrency recovered very quickly over the past 48 hours which was a surprise for many investors.

As noted in the latest cryptocurrency news, the bitcoin futures market of CME reached a new high level at the end of June with a 30 percent surge. Gareth MacLeod from Gryphon Labs stated that the traders in the traditional finance industry are more optimistic now after Libra’s whitepaper was released:

 “It’s most likely traders in the traditional finance industry using CME to take a long position off of news about Libra.’’