Bitcoin Rebounds Past $7000 Despite Early Week Jitters
- After a 10% drop, Bitcoin has pulled up
- Technical signals in the candlestick and MACD patterns indicating a bullish turn.
- Estimated market average mining cost stands at $6,300.
Bitcoin price plummeted 10% in two days, which inevitably influenced the direction of the altcoins as well. The bearish run has even pushed Ethereum into a net-negative position for the year 2019. In fact, CryptoBriefing mentioned that the total cryptocurrency market capitalization is just shy of $2 billion of the weekly opening price.
Despite the drop in the early part of the week, Bitcoin seems to have a lot of fight left in it, ending the week on a high note by surging past $7,000 on Thursday and closing at $7,535 by the end of the week.
This move validates a number of signals that Bitcoin may have finally found a bottom on a macro scale and now ready to reverse to the upside based on an article by CryptoSlate. This is backed by Wednesday’s bullish performance by Bitcoin, with the chart of the cryptocurrency posted a bullish engulfing candle, indicative of a trend reversal then a continuation of the reversed trend. This candle also validates the existence of two bullish divergences between the price and the one-day Relative Strength Index and Moving Average Convergence Divergence (MACD).
In addition, the article mentioned that Bitcoin maintained the $6,500 level which is around the bottom of a logarithmic growth channel that BTC has maintained for eight years.. The relevancy of it is high as previous bull markets was led after rebounding from this support level.
However, some are saying that the bounce back in Bitcoin’s price should have been expected. This is due to a report by an analyst at Coinshares that was published by Forbes, mentioned early this month that the current average cost of mining a Bitcoin is about $ 6,300 – a fact that would help to ensure, but not guaranteed, that the price would not drop below that figure.
*The article is merely a sharing of information of market observations and conditions. The information publised should in no way be perceived as advice on how to invest or trade.