The price of a single bitcoin traded at $6,000 for the first time since November 2018, continuing its stellar start to the year. Bitcoin is up more than 54% this year.
After rallying to a high of roughly $20,000 in 2017, based on investors jumping on the bandwagon and trying to get rich quickly, the bubble finally burst, sinking the cryptocurrency to less than $4000 within just a year’s time. Since the bitcoin boom in 2017, the world’s largest cryptocurrency has dropped more than 60% from its high.
Analysts though are optimistic that the cryptocurrency market may have found a bottom.
“It’s all about momentum at the moment,” said Naeem Aslam, chief markets analysts at Think Markets U.K. “We are seeing a build up of OTC (over-the-counter) volume but its mostly buyers, we aren’t seeing any sellers looking to take positions off the table. It’s a really positive sign.”
“Many people are looking closely at the level $6,200 as a major resistance for bitcoin,” eToro senior market analyst Mati Greenspan wrote in a note to clients. “Though I don’t see any major significance for this specific number, I suppose it’s as good a benchmark as any.
Greenspan added, “The crypto markets have been on a roll lately. Bitcoin is significantly outperforming, not only compared to other crypto-assets but every other major asset so far in 2019.”
Some brokerage firms are betting on a continued uptick in Bitcoin, with companies like Fidelity offering new trading opportunities in the near future. Fidelity Investments’ new cryptocurrency company will offer trading for institutional customers in a few weeks, Bloomberg reported Monday.
According to CNBC, Fidelity is betting that the cryptocurrency bear market will turn around, and so it created its cryptocurrency platform Fidelity Digital Assets in October. The new company introduced a custody service to securely store bitcoin for its customers in March, CNBC reported. Now, it is letting customers buy and sell the cryptocurrency.
“Sentiment has shifted here,” Brian Kelly, founder and CEO of digital currency investment firm BKCM, told CNBC’s “Futures Now” recently. “All indications that we have — whether it be fundamentals, technicals, the quantitative analysis we do — all suggest that we probably have at least started to put in the bottoming process.”
Investors interested in the technology that powers cryptocurrency might consider a blockchain ETF like Amplify Transformational Data Sharing ETF (BLOK), or Reality Shares Nasdaq NexGen Economy ETF (BLCN).
For more market trends, visit etftrends.com.