Even though Bitcoin has the potential to reach $58,000 if an ETF is approved, according to Karim Heiden, we still have a long way to go. The story was covered by Toshi Times a few days ago. At the moment, Bitcoin is hovering around $6,000 which is described as crucial support by Rivermont Crypto Fund, based in Canada.
It is not the first time Bitcoin has retraced to the $6,000 region. The next direction of Bitcoin is an essential subject within the crypto ecosystem and has been for the greater part of 2018. The reason Bitcoin is the cryptocurrency everyone is watching closely is that it dominates the market by 51% out of 1818 cryptocurrencies according to Coinmarketcap.
The price action in the last few months has mostly been to the downside after the massive rally of 2017, and the Bitcoin price has dropped around 70% in 2018. By looking at a chart of Bitcoin corrections, you can see that even though the drop is tremendous, it is not the first time it happens and during 2013 – 2015 we saw an even more significant drop of 82%.
The support around $6,000 seems to be holding true, and buyers come back to the anticipation for an ETF approval – which could determine the direction of Bitcoin. The mood of the market seems to agree that we are waiting for something to trigger the next move up or down. The trigger could well be an ETFs approval or delay. The recent selloff was partly due to an overreaction of the decision to delay the ETF and the downward movement once again found support at the $6,000 mark, according to Dan Morehead, CEO of Pantera Cryptocurrency Fund.
The market is waiting for news, and Rivermont Crypto Fund remains cautious in the current market situation. In the Facebook post, they reveal their investment allocation and allocate 19,4% to Bitcoin, 8,4% to ETH and have 72,2% in cash.
While the market awaits some major decision, especially from the regulatory agencies like SEC, it is clear that technically, market makers and major players have their eyes fixed on a support that is proving significant in the life of Bitcoin and by extension, cryptocurrencies in general. Since the market is small, with a capitalization of $218 billion, it is highly news-driven, and a little capital could drive the market up or down. Black Rock has $6 trillion under management, imagine what would happen if they allocated 5% of their holdings into cryptocurrencies and according to a topic, previously covered by Toshi times, they are waiting to get in.
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My name is Dennis Sahlström, I have been trading and investing since 2012 and have since June 2017 made between 3-6% a month. I have been watching the crypto market since the beginning of 2017 and saw the great returns a lot of people had gotten. I thought I needed to do my research! Since then I have been studying the crypto market and realised the great potential Blockchain have. Some say it’s internet 3.0 we are looking at and I am sure its here to stay. It is already changing industries and the world. Also, I am running a crypto education platform because I think people should educate themselves about the opportunities we have in front of us.