Bitcoin Price: Defense of $7,000 Could Lead to Thanksgiving Rally
Bitcoin price is finally trending upward once again, after weeks of downtrend taking the price of the crypto asset to $6,500 at the low.
Last night, Bitcoin price made another attempt to break back below $7,000 but the move was short-lived as bulls were able to defend the key area. Could the current bounce have some (turkey) legs that extend into the Thanksgiving holiday?
Bulls Defend $7,000, Rebound In Effect or Reversal Forming?
Late last night, Bitcoin price tumbled back to under $7,000 for a brief stop at $6,800 before rebounding back above $7,000 and is now trading above key resistance at $7,500 and climbing.
Related Reading | A Bitcoin Thanksgiving: Looking Back on a Wild One-Year Ride
The quick dip to $6,800 to find support was just what bulls needed to instill some additional confidence, and form the right shoulder of a large inverse head-and-shoulders on Bitcoin’s hourly price charts.
Inverse head and shoulders are chart patterns that typically signal a trend reversal, even if only in the short term. Should the right shoulder complete and the pattern confirm, the target would bring Bitcoin price to as much as $8,100 or higher if bulls can sustain momentum.
Following a break above $7,300, the first-ever cryptocurrency is now back above support turned resistance, and potentially signaling that a rally higher is ahead. Such a rally could take place during the Thanksgiving holiday, – a holiday that two years ago acted as a launchpad for Bitcoin, taking the price of the cryptocurrency from $10,000 to $20,000 at its peak.
Last Thanksgiving, Bitcoin was on sale, after breaking down from support at $6,000 to set its bear market low a month later. If Bitcoin can’t break above $7,300 and sustain it as support, the crypto asset could suffer yet another catastrophic fall much like last November.
Will Bitcoin Price Rally On Holiday FOMO?
A study released earlier this year by data firm SFOX, revealed that holidays often cause FOMO into Bitcoin. It was Thanksgiving 2017 that caused Bitcoin to go parabolic and reach its all-time high, and after Bitcoin bottomed in December 2018, it went into the Christmas and New Years Eve holidays on a rebound.
The study was released just ahead of the Independence Day holiday in America, which acted as an extremely poor example of Bitcoin FOMO on holidays. After late June, Bitcoin’s parabolic rally of 2019 had come to an end and is now trading nearly 50% lower than at the time the study was released.
Related Reading | Research Shows That Holidays Cause FOMO Fireworks in Bitcoin Price Charts
Still, holidays are a prime time for Bitcoin to rally, as order books are usually thin from traders attending to family feasts and early Black Friday shopping, and because those family feasts can sometimes include dinner-table discussions about finances, and the conversation about buying the dip in Bitcoin could come up. After all, it is cheaper than it was two Thanksgivings ago, and with a potential rally ahead, a quick profitable Bitcoin trade could make for a Merry Christmas in December.
The post Bitcoin Price: Defense of $7,000 Could Lead to Thanksgiving Rally appeared first on NewsBTC.
XRP Analyst Suggests IPO Could Be Game-Changing for Ripple: Here’s How
Sunday January 26, 2020
This week, Brad Garlinghouse — chief executive of Ripple Labs in San Francisco — made a massive announcement at a Wall Street Journal event in Davos, Switzerland at the World Economic Forum. The industry...
Ethereum DApps Saw 1.2m New Users in 2019: It’s Tremendous For Long-Term Price Trend
Tuesday January 21, 2020
Decentralized Applications (DApps) on the Ethereum network recorded over 1.2 million new users in 2019. Continuous growth of the ETH ecosystem is an essential fundamental factor for its long-term price trend. Report shows there...
The post Ethereum DApps Saw 1.2m New Users in 2019: It’s Tremendous For Long-Term Price Trend appeared first on 12bitplay - Bitcoin Play.
The post XRP Analyst Suggests IPO Could Be Game-Changing for Ripple: Here’s How appeared first on 12bitplay - Bitcoin Play.
Who’s Accumulating Bitcoin? 784,000 Addresses Now Hold 1+BTC
Wednesday January 22, 2020
Studying Bitcoin wallets and the number of BTC they hold shows evidence of a growing pattern of accumulation of the digital asset. The number of Bitcoin addresses with a balance of more than one...
The post Who’s Accumulating Bitcoin? 784,000 Addresses Now Hold 1+BTC appeared first on 12bitplay - Bitcoin Play.