Bitcoin has retaken the $10,000 psychological level after coming under bearish pressure in recent weeks. The spike comes hot on the heels of growing optimism that Facebook’s Libra will make its much-awaited entry into the sector, in the first half of next year. The unveiling of Libra is of great importance as it is poised to fuel mainstream media coverage of cryptocurrencies.
Bitcoin Price Catalysts
The fact that the likes of Visa (NYSE:V), Mastercard (NYSE:MA), PayPal (NASDAQ:PYPL), and Uber (NYSE:UBER) have already invested in becoming members of the Libra Association all but raises the prospects of cryptocurrencies gaining mainstream adoption. In addition to the Libra impact, investors are increasingly buying cryptocurrencies on the dip in anticipation of further rallies to all-time highs.
Bitcoin has also continued to surge in anticipation of its halving event. The much-awaited event will result in the reduction of the number of Bitcoins that enter the market with the addition of a new block. Just as it has been the case in previous years, Bitcoin has always rallied a year in advance to a halving event.
The world largest interdealer broker TP ICAP announced plans to launch a digital asset desk for Bitcoin futures, which is another factor behind BTC’s strengthening sentiments in the market. The desk will seek to take advantage of institutional traders, who are looking for ways to venture into the cryptocurrency business.
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Bitcoin Price Analysis
Bitcoin has continued to elicit buying pressure with each pullback in the market. The cryptocurrency is already up by more than 300% for 2019 as it continues to recoup losses accrued over the past year. BTC is currently trading in the $10,000 to $11,000 trading range with a bullish bias.
However, the Relative Strength Index and Stochastic indicator have started to turn down after clocking overbought levels. Bearish momentum might develop as part of the consolidation seen early in the month, as indicated by a negatively crossing monthly Moving Average Convergence Divergence (MACD). A positively crossing monthly MACD, on the other hand, signals further upside going forward.
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