Bitcoin has ridden quite the wave this weekend. In fact, you could argue that this ‘wave’ started around the 13th of April and has caused Bitcoin to generate quite the momentum.
Bitcoin is often pinned down as the market leader, not in terms of its market capitalisation, that’s common knowledge, I refer to Bitcoin as the market leader in the sense that often, Bitcoin seems to pave the way for the rest of the markets. There are a number of exceptions to this however, the value of Bitcoin does tend to dictate how the rest of the market will perform. This, is obviously down to the collosal dominance of Bitcoin, it’s just an organic part of its authority. In fact, at the time of writing, Bitcoin dominance is 36.8%. Considering how many cryptocurrencies exist, that’s an incredible figure.
At the time of writing, Bitcoin is valued at $9,232.96 and is down 0.53%. This weekend has seen Bitcoin breach the $9,000.00, moving swiftly towards $10,000.00, once $10,000.00 is passed, things will get very exciting indeed.
To truly appreciate the performance of Bitcoin over the past couple of days, we should review how the currency has performed over the weekend.
Friday saw Bitcoin breach $9,000.00 for the second time this week, moving up to a height of $9,502.83 on Sunday the 29th of April, during what looks to be a slight overall surge that has pushed the value of other nearby currencies up also.
What now for Bitcoin?
Okay, so in this correction period, Bitcoin is of course at risk of dropping below $9,000.00. However, it is interesting to see that Bitcoin has now peaked past this threshold a few times now, suggesting that a more permanent movement over $9,000.00 is pending soon. A maintenance of over $9,000.00 needs to occur before $10,000.00 becomes a realistic target. Indeed, Bitcoin can easily hold a value of $10,000.00 however, its market dominance means that in order to succeed, Bitcoin needs ensure the rest of the markets remain positive too.
Of course, the $10,000.00 threshold may cause a mass Bitcoin sell off, with late investors worried that they won’t see a positive return on their investment. Furthermore, those who invested early on but failed to sell during the cryptocurrency boom at the end of 2017 may see $10,000.00 as an opportunity to get a solid return on their early investment, on the premise that they believe Bitcoin may never reach $20,000.00 again.
Finally, and I think this speaks for the majority of Bitcoin investors, $10,000.00 for them, will see the start of something far bigger. A mass sell off may occur but likewise, people may start to buy again, in the hope that their investment will double, and possibly even triple throughout the year.
This is all based upon speculation. Behaviours of people are volatile and as are cryptocurrencies, investing is a personal decision that should be based upon extensive research. Bitcoin is the market leader, treat it with the respect it deserves and lets see what happens from here.