Those invested in the cryptocurrency markets are sure to be pleased this week, with a jump of over $2000 to $13.7K, which represents the highest price that Bitcoin has experienced in months. The next few days contain a test for Bitcoin that many consider to be the deciding factor as to whether Bitcoin goes on to test previous highs of $20,000 or more.
Those that abide by technical analysis are pleased to see strong signals across the board, though many are calling for a short-term pullback to consolidate for the next leg up. Furthermore, Bitcoin dominance is continuing to rise, indicating a willingness to invest in Bitcoin, but not perhaps other altcoins just yet. Typically, an altcoin rise comes shortly after a drastic rise in Bitcoin, so altcoin investors shouldn’t be discouraged just yet.
Another interesting development in the latest rise of Bitcoin has been its decoupling from stocks. Traditionally, Bitcoin has followed stock movement pretty closely. With this latest movement, Bitcoin is beginning to stray away from that correlation and instead float under its own power.
One potential source of the renewed interest in Bitcoin, in fact, could be coming from the fact that people feel a need to protect their finances now more than ever. With traditional markets faltering and the country threatening a recession, people feel that it is in their best interest to store their money and financial future in a more secure asset such as Bitcoin. The coming days and weeks will tell us if this rise will take Bitcoin back to former highs.
