Bitcoin Poised For Further Gains After Surpassing $4,000

Bitcoin could enjoy additional gains after breaking through $4,000, according to sentiment data and technical analysis.

The cryptocurrency reached as much as $4,063.95 around 12:30 EST on Sunday, January 6, according to CoinDesk bitcoin price data.

Since then, bitcoin prices have largely fluctuated between $3,950 and $4,050, additional CoinDesk figures show.

Bullish Sentiment

While bitcoin has been trading largely range-bound, sentiment data reveals that it may soon push higher, noted Joshua Frank, cofounder of cryptocurrency analytics platform TheTIE.io.

"Bitcoin's daily sentiment score, which looks at the conversation over twitter over the last 24 hours vs. a 7 day rolling period has been positive throughout all of 2019 thus far," he stated.

"We saw that daily sentiment peaked on January 4th, and while it has fallen slightly, it has remained positive."

"Given the historic correlation between bitcoin sentiment and price, this would suggest further gains for the cryptocurrency," said Frank.

Technical Analysis

Bitcoin is "showing multiple bullish signs" that could cause the digital currency to retest "the 2018 trend line that currently is at the $4500 level," said Jon Pearlstone, publisher of the newsletter CryptoPatterns.

"Any strength on a test of the trendline would likely lead to a retest of key resistance at the $6000, a level that held for months," he added.

Mati Greenspan, senior market analyst for social trading platform eToro, offered a less optimistic assessment.

"At the moment Bitcoin is consolidating it's gains above $4,000," he noted.

However, "this is only the half way mark within the broader range between $3,000 and $5,000."

Post a Comment
Your email address will not be published. Required fields are marked*