Bitcoin, the largest digital currency by market value, rallied Friday after breaking through the technically important $8,000 area and some crypto market observers believe bitcoin is capable of delivering more near-term upside.
On Friday, bitcoin was up 6.27%, trading at $8,100 at 12:30 pm Eastern, according to CoinMarketCap.com.
“Pantera Capital Management, which has more than $800 million in assets, says $6,500 was the low of this bear market and Bitcoin will stay above that price for the majority of the next year, likely surpassing the previous record of almost $20,000, according to a note sent to investors Thursday,” reports Bloomberg.
Friday’s move higher coincides with some favorable seasonality for bitcoin. Seasonal factors could lead to better things for the cryptocurrency in the second quarter, a period in which bitcoin has historically fared well.
Recently, the Bitcoin Dominance Index has been rising, confirming the dominant perch of the cryptocurrency. After bitcoin, the largest cryptocurrencies are Ethereum, Ripple, Bitcoin Cash and Litecoin.
Rare Calls for Big Bitcoin Rally
Pantera, “which started investing in Bitcoin in 2014, has only made three buy and one sell recommendations in seven years, the note said. The new call comes after Bitcoin crossed its 200-day moving average,” according to Bloomberg.
The price of bitcoin has fallen nearly 60% since December. In recent months, regulators around the world have stepped up scrutiny of digital currencies and related assets, including some blockchain investments. However, some bitcoin bulls believe the digital currency can regain its peak of $20,000, last seen in December.
There is significant room for growth in the cryptocurrency universe. Recent data suggest a small amount of American investors own any digital currencies and, after bitcoin, the numbers of crypto ownership dwindle.
Bitcoin’s rally above $8,000 comes just a couple of weeks after the cryptocurrency committed a death cross, where its 200-day moving average fell below its 50-day line. The death cross is normally bearish, but it needs to be validated, something bitcoin did not do.
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