On Friday morning, the markets were active again. Bitcoin tried to climb above the $8,000 handle. Thursday’s decline to $7,500 attracted new buyers. Now, BTC is up 4.75% and hovering around $8,000. Once more, the token turned for some help from investors aiming to enter the market on drawdowns.
Just a week ago, buyers came in at around $7,000 but this time they emerged closer to $7,500. The altcoin market is not lagging behind with Litecoin surging by 12% while XRP is gaining 4% currently. It now seems like the market participants are confident of moving large amounts of BTC.
On May 22, around 10,000BTC valued at almost $80 million currently were withdrawn from a Huobi Wallet. Today, another whale withdrew $1,000 BTC from their cold wallet of Bittrex exchange. The crypto community seems to have realized that these assets just return to circulation and not liquidated after transactions.
Crypto bulls think that Bitcoin is now at the beginning of a long uptrend. A bitcoin pioneer who is also the co-founder of Gemini, Tyler Winklevoss, thinks that Bitcoin is a digital peer of gold. Currently, gold has a market capitalization of almost $7 trillion. That means bitcoin has a huge upside potential since its current capitalization stands at around $141 billion.
In the medium term, bitcoin and its investors could face serious challenges. Josh Rager, a crypto analyst, revealed that bitcoin tumbled almost 9 times in the past rally. Hence, the bulls will be seriously tested with multiple waves of correction. The faint-hearted and most impatient investors will be eliminated along the way. Others will get a chance to get the asset at local minimums.
At the moment, it is evident that the cryptocurrency market is moving in close harmony with an existing technical analysis. That analysis was based on the experience shown by the stock market of the early 20th century. Later on, the stock market was changed by relentless influence from very large banking capital and index funds.
However, cryptocurrencies are most attractive to the long-term investors who see an uptrend. Also, the speculators are interested in the market to gain from it when the prices periodically rock the boat.