On Wednesday, after days of prices stalling in the low-$9,000s, Bitcoin broke higher. In a few hours’ time, the leading cryptocurrency rallied from the local lows of $9,100 to as high a $9,770 — a range of just under 7.5% — as can be seen in the chart below.
The price of $9,770 is the highest Bitcoin has traded at in literal months.
While the bullish momentum has since subsided, with BTC falling slightly to $9,600 as of the time of this article’s writing, the strong reversal, which comes as investors were expecting a larger correction into the $8,000s, has convinced many that Bitcoin is likely on its way to test $10,000 in the near future.
Bitcoin About to Surge Even Higher, Top Analysts Conclude
Mike Novogratz, the chief executive of cryptocurrency firm Galaxy Digital and a former partner at Goldman Sachs, posted the below tweet after Wednesday’s crazy surge, summing up his thoughts by writing “Crypto is bid. Period.” Bid, in this context at least, meaning there are buyers in the cryptocurrency market.
Crytpo is bid. Period. Hearing more and more inquiry. Always dangerous but higher prices are making me more bullish. $eth over 200 for a couple of days will open a bigger move. $btc has 10k looming. Once that goes we are off to the races.
— Michael Novogratz (@novogratz) February 6, 2020
He continued that his firm has been “hearing more and more inquiry” about cryptocurrencies, adding that this coupled with the trend of higher and higher prices is making him more bullish.
Novogratz concluded by writing that if Ethereum holds above $200 “for a couple of days” (right now, ETH is at $204) and if Bitcoin surmounts the key psychological and technical resistance at $10,000, “we are off to the races.”
This comes shortly after he told Bloomberg in an interview that he remains extremely positive on Bitcoin in 2020, citing a flurry of factors, the summary of which is as follows:
- The moves by central banks to lower interest rates and inject capital into markets through quantitative easing, repo operations, and other activities are likely to prove Bitcoin’s scarcity.
- As Bitcoin has rallied through local crises on a geopolitical scale, like the coronavirus outbreak and the Iran-US kerfuffle, it has begun to prove that it is digital gold.
- The growing level of infrastructure could draw in more investment, thus increasing prices.
Novogratz isn’t the only bull.
Prominent cryptocurrency analyst Jacob Canfield that Bitcoin remains in a clear uptrend, noting that the fact the cryptocurrency has flipped the $9,100 price point into a support level is a “big deal” for BTC.
He said that with there being an uptrend channel on the daily chart and an ascending triangle forming with the RSI indicator, more gains are likely.
Zoom out and keep it simple.
The $9100 flip was a big deal for #bitcoin. Former support of the ‘descending triangle’ and the China pump.
Ascending triangle forming on RSI with a clear uptrend channel on the daily. pic.twitter.com/h2ZTXdT8uR
— Jacob Canfield (@JacobCanfield) February 5, 2020
There’s also prominent cryptocurrency trader Filb Filb — the analyst who in October 2019 called Bitcoin’s exact trajectory for late-2019 and early-2020 — noted in his Telegram channel that his indicator is currently showing that BTC is in an uptrend on short-term, medium-term, and long-term time frames, suggesting more upside is imminent.
Altcoins Start to Stand Out, Outpacing BTC
An interesting trend this market has seen form over the past few weeks is that of altcoins, cryptocurrencies that aren’t Bitcoin, outpacing the market leader. Per data from Coin360, Bitcoin is up 17% in the past month.
While this is undoubtedly impressive, a majority of altcoins have outpaced this: Bitcoin Satoshi Vision is up 163% in the past month, Ethereum has gained 43%, even XRP (which dropped 50% in 2019) saw 29% gains in the past 30 days.
Due to this, Bitcoin dominance — the percentage of the cryptocurrency market made up of BTC — has dropped from around 69% to 64.4% in the past few weeks alone.
Many have said that this surge in the price of altcoins compared to Bitcoin is a precursor to a so-called “altseason,” when altcoins outperform BTC by hundreds of percent due to investors looking for higher-yield opportunities in crypto.
The last altseason was in 2017, when Bitcoin dominance tanked from above 80% to as low as 33% by early-2018, with this rally being spurred by lofty promises from blockchain projects about how their cryptocurrency could be globally adopted.