Bitcoin about to bust down the door at $10,000!
Bitcoin is testing a key psychological resistance level at $10,000.
For a long time $10,000 was looked at as somewhat of a pie in sky lofty number that bitcoin would some day reach.
Much like $100k or $1 million is looked at today (depending on who you are, cough cough McAfee).
Then, when prices first broke that $10k number in late November of 2017 it was finally a reality.
Today, we are looking at breaking that number again to the upside.
This coming after hitting a high near $20k in December and then falling all the way to $6k over the last 3 months.
In South Korea and Hong Kong, bitcoin has already breached that $10k number this morning. Will the US be next?
The charts look to be saying yes!
(Source: https://bittrex.com/Market/Index?MarketName=USDT-BTC)
Honestly, to me that chart looks like it is going to make a massive run and break that previous all time high, but that may take some time to play out, or it could happen in a few weeks like it did back in December.
What's causing the rally?
According to BKCM CEO Brian Kelly, this is just the beginning of the price surge and it is most likely being caused by the announced from Goldman Sachs the other day that they will be opening a bitcoin trading desk.
In his opinion Goldman is just the tip of the iceberg and more banks will be following their lead in the very near future.
Also the fact that regulators have stated lately that bitcoin is definitely not a security seems to have removed some of the regulatory uncertainty surrounding it.
That seems to have reassured some investors that were currently on the fence.
To put it even more bluntly, Charlie Shrem declared on twitter that:
"May 2018 will be the last time we ever see bitcoin under $10,000"
(Source: https://twitter.com/CharlieShrem/status/992109375555858433)
Not sure about you, but I like the sound of that!
How will this affect steem?
The only downside for steem and altcoin investors is that there is a possibility that if btc were about to go on a major run, it could pull funds from other coins.
It has happened on at least 2 other occasions in 2017 alone.
If that is the case could we see a sizable pullback in altcoins in the near future?
It's certainly possible, but even if that is the case, history has shown us that once bitcoin slows or stops running that the new found wealth often makes it's way back into altcoins, pushing them up higher than they were previously.
Which means, even if steem and some of the others experience some near term weakness due to the btc run, we could see them rally to new heights once bitcoin slows down and that money starts to seek out new investments.
Which means, overall, a bitcoin rally is good news for the entire sector!
Stay informed my friends.
Follow me: @jrcornel
We might get a monstrous rally here as $10,000 gets torn up like a tissue at a snot party. However, the margin longs on Bitfinex have been building up steadily since $8900.
I'd be careful here, this could go either way:
Good point. Usually, though not always, when everyone is on one side, the price goes the opposite direction. Though, "this time is different" of course. :)
bitcoin is the first who took the arrow shot, and many altcoins learned from that lessons, though i considered bitcoin as a commodity other than anything like security or a payment system for right now it's not possible as a global currency if the scaling is still a problem.
why is steems price not climbing as well?
breaking this resistance will be a great long awaited for relief for many folks. We need it to hold above those levels and actually to solidify a position above the current 3 month high of 11000 ish. there was also major resistance around 12500 last time we reached beyond 10k
I don't have much invested in bitcoin but if it helps Steem go up i'm happy. I'm hoping for a spike beyond 10 and 12 k but that may mean we are setting up for another downturn
We need to keep building the Steem community and show it has real utility. It has the opportunity to stand out from other alts as we have an actual community. By all means power up, but look for ways to buy stuff from other users. You get to spend what you earned here and others get to boost their accounts.
That is a great point. It doesn't seem right that it sits around number 30 on coinmarketcap.com currently. I could name at least 15 other coins it should not be behind.
I think it still has to prove itself, even though we know it works. I hope to see new developments from Steemit Inc sub to help that happen
Sounds great. I hope this rally continues.
Next stop $100,000!!!
This would be really welcomed getting back to 10k should prove a point to many which hopefully tempts the masses back :D
I guess that the only point when Bitcoin will pull funds from the altcoins will be when lightning network will get launched, until then, altcoins are moving up faster than BTC, at least so I think :D
That has been the case the past month for sure, though I am not sure that trend continues from here.
It is true, nobody knows what will happen from now on, except the market itself.
I hope it moons soon!