pWill Bitcoin Price Reach 6, 000 USD Soon? Crypto Markets Hi, Im Giovanni, and today we are here with Patrick Heusser from Crypto Broker AG, who is gonna give us his analysis on the latest movements in the crypto market.
So, Patrick, earlier today Bitcoin price shot up touching 5, 800 and the total market cap for Bitcoin reached 100 billion. What does this bullish move tell us about the long term and short term price perspectives? Well, first of all, 5, 800 suggests that were going to see 6, 000 which is a pretty interesting level.
Having said that though, the way up will have a bit of resistance, because were now pushing into the high volume range. Were squeezing up currently due to short margin trades, they get squeezed out, so its the pain trade right now. And on the longer term timeframes weekly or monthly we see a real bullish set up there and looking for longer term gains to come. This is also combined with the halving coming up in May 2020, which we think is one of the events economically and technically in the Bitcoin space to look out for.
Thats interesting. So, what do you think was the reason for this growth? Well, thats a bit difficult to say, there is no particular reason for the current spike, its more of that the market brought himself into an uncomfortable position, short margin trades are getting squeezed. They put on positions during the BitfinexTether FUD and now are being in a bear trap we call it, and this will take a bit more time till these guys are squeezed out. So how is the TetherBitfinex ongoing controversy influencing the market movements?
Thats a good question, but pretty hard to answer here in just a few minutes. But you have to bear in mind that there are two topics or questions you need to think about it. First of all, is Tether systemic to the whole crypto trading space. And then second thing, the connection between Bitfinex and Tether. So short term we see a chance that the prices will react to the downside if one or the other entity goes down.
There is even a chance that both will go down as to so intertwined. On the longer term perspective we think that this is a good sign. Its a clean up or a wash out of semireputable counterparties and to pave the way for institutional adoption. We need some proper counterparties in this space.
So while many analysts think that we will test soon the psychological 6, 000 resistance, other, more skeptical, say that we need first to bounce back to their 4, 0004500. So what do you think about that, whats your opinion? Well, I would say 4, 800 is the level to watch. As long as we trade above that level, I have a bullish case all the way. On the other hand, I would like to see a pullback, but first I think the short margin trade is getting squeezed out.
So were going to see 6, 000 or even a little higher than 6, 000 on a very quick move up and then a retracement down again to 5, 000, 4, 800 needs to hold. And then we have a clean and more healthy way to trade higher. So one last question would be. While most altcoins repeated the Bitcoin pattern in the last few hours, XRP registered far more modest gains.
Whats the reason behind that? Well, first of all, the altcoins over the past few weeks have not really followed Bitcoin. So they were in pain as well, but I give you that, over the past six months Ripple underperformed heavily to Bitcoin performance, and I have a very clear opinion why that is. The Ripple foundation is oversupplying the market with their coins, and they are doing this by the master lending agreements, they put out to professional counterparties and then theyre using them as point of sale for their coins.
So there is a constant oversupply of Ripple coins in the market, of XRP, and that is clearly seen in the chart which is just trickling down in a very decent sort of manner. And we then have those spikes up which are only holding for like 12 hours and then the trend resumes to the downside. Thanks, Patrick.
Here with us was Patrick Heusser from Crypto Broker AG. Thanks for watching and dont forget to subscribe to our channel for more exclusive content. This episode is sponsored by Trade Santa.
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