Bitcoin rose more than 20percent in 13 days, reaching a new high in more than two years. Is it time to start?

category:Finance
 Bitcoin rose more than 20percent in 13 days, reaching a new high in more than two years. Is it time to start?


Guy Hirsch, the U.S. managing director of eToro trading platform, and some well-known investors believe that PayPals decision is very important news compared with the special currency. Chamath palihapitiya, CEO of social capital and venture capitalist, commented that after the news of PayPal, every big bank had to meet to discuss how to support bitcoin.

Hedge fund tycoon Paul Tudor Jones, a billionaire, cited other reasons to buy. He believes that the unprecedented quantitative easing policy of the Federal Reserve has laid the foundation for inflation, which is conducive to a naturally deflationary digital currency. we are still in the first growth phase of bitcoin, and bitcoin has a long way to go in the future, he said.

But some analysts are slightly cautious about the recent price trend of bitcoin. It has been pointed out that the vast majority of bitcoin holders are currently profitable and may choose to sell immediately for cash. After breaking through $13000, bitcoin is close to $14000, an important resistance level in the middle of last year. According to the exchanges price, in June last year, the price of the currency rose to $1397, but it fell quickly one day later, falling to $10525. Twenty one days later, the price of the currency fell below $9300, a drop of 35%.

However, CEO Gina Sanche of Chantico global warned that bitcoin is extremely volatile and highly affected by momentum, so it is necessary to be careful to include this asset in the portfolio. Its still in the wild land of lack of regulation. Maybe a statement that can increase demand today will push up the price of the currency, and you can lose money in a month.

From a technical point of view, bitcoin has broken through the 10 day and 50 day moving average, which is a bullish signal.

Elie lerest, a partner at quantitative trading firm exoalpha, points out that bitcoins key now is to hold on to $12500 and then turn its resistance into support. The last time bitcoin held steady at $12500 was in July last year. He predicted that the next few days might be a sideways stage, or even a slight retreat, but bitcoin seems to have established a new base point at this price.

On Friday, bitcoin prices have fallen significantly from Thursdays, with US stocks falling below $12800 in midday trading, more than $400 from Thursdays high and more than $300 from Fridays intraday high.

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