Reporting from Bloomberg, Bitcoin traded above US $ 11,000 for the first time in 15 months, recovering more than half of the parabolic rise that caught the attention of mainstream investors before the crypto currency bubble exploded last year. "The rise of Bitcoin is quite extraordinary. Money doesn't leave assets, just sit on the sidelines waiting to return, "said George McDonaugh, CEO and co-founder of the London-based blockchain and crypto investment company, KR1 Plc.
Bitcoin surged as high as US $ 11,251.21 on Monday, a 13% increase from Friday night. This puts Bitcoin at the highest level since March 2018. At that time BTC was at US $ 10,919 at 11:01 New York time. The biggest crypto currency has a higher movement at the end of 2017 with a peak value above US $ 19,500, before finally declining continuously until 2018. When it declined, the price of Bitcoin was in the range of US $ 3,300 to US $ 4,100 for several months. A study by Indexica, an alternative data provider, showed three key drivers of Bitcoin's rise, namely more complex conversations around Bitcoin, fewer worries about fraud, and a shift in time about how Bitcoin was discussed from the past to the future.
"The market has been very mature since Bitcoin last exceeded US $ 10,000. This process is far more justified given the current level of adoption, "said Matt Greenspan, senior analyst at eToro. Unlike last year, there are now renewed signs of interest in the mainstream in crypto currencies and the underlying blockchain technology. The most obvious sign is Libra Facebook Inc. The social media giant is working with a group of large partners from Visa to Uber to develop the system, which has attracted attention and criticism from politicians who raise privacy and security issues.
The appearance of Libra is validating the crypto space and sending all the major digital coins higher. Bitcoin volatility is likely to last, with US $ 12,000 and US $ 15,000 as the next two critical resistance levels, "said Edward Moya, Head of Oanda Corp Market Strategy in New York. Technical indicators that are followed by some traders suggest the rally may not end soon. The Bitcoin directed movement index is currently in the longest positive divergence since the increase in euphoria in 2017. DMI shows the direction of price trends by mapping the difference between positive and negative levels. The current index is in strong positive divergence as seen by the divergence between the + DMI and -DMI indicators and the average directional index above the very important 25 mark. That indicates a strong trend and moves up towards 50 which shows a very strong trend.
However, the speed of this rally has some observer warnings so that it is once again justified. For Whitney Tilson, founder of Empire Financial Research and former hedge fund manager, Bitcoin is an "exhibition A" in the lexicon "a fraud that enriches people at the expense of the average person." "Don't be fooled by the reflections of death this year," Tilson said in comments Sunday then. "Mark my words: A year from now, it will be much lower. It's a techno-libertarian pump-and-dump scheme that will end in destruction. "