Bitcoin looks set to test the $10,000 mark soon, as per technical analysis, although some investors fear the Lunar New Year may play spoilsport. It means, that a drop in prices can cause some discomfort in the ecosystem of cryptocurrencies.
Ahead of New Year holidays (starting Feb. 15), Chinese and South Koreans often exchange bitcoin for fiat currencies (to fund increased spending), and bitcoin (BTC) tends to drop in the run-up to the event. This may be one of the explanations for the drop in the prices of cryptocurrencies, there is an offer for sale and it is when many users interpret it alarmingly and the sale begins, the results have been reflected in the entire ecosystem of the crypto.
The increase in fears this year is bitcoin’s (BTC) recent inability to move above $9,000 in a convincing manner. Since Feb. 10, the cryptocurrency has been restricted to a narrow range of $8,000 to $9,000, shows CoinDesk’s Bitcoin Price Index (BPI).
Even so, historical data indicates the probability of bitcoin reporting gains this month is high.
January was a good month for bitcoin during the three year period of 2012–2014, while the performance was mixed in February.
However, since 2015 a clear pattern has been established: BTC drops in January and gains value in February.
The 26 percent decline seen in January this year is the second biggest monthly drop since 2015. Going by the pattern seen in the last three years, the cryptocurrency could see gains this month.
The aforementioned, is one of the possibilities, we must not forget that the market of cryptocurrencies, have a behavior closely linked to the political and economic events of the countries, confidence and certainty helps the increase in prices, on the other hand, when the number of users looking for a safe refuge increases, it helps in the price increase.
On the other hand, when looking for valid information in some media, regarding technical graphics, Bitcoin has seen a major bullish reversal pattern today. As of writing, the BPI is seen at around $8,800, and has appreciated by 3.76 percent in the last 24 hours, according to reliable sources.
In the historical price information, one can glimpse the tendencies towards the rise of bitcoin prices, when the information is analyzed the following is found.
Inverse head and shoulders breakout: a bullish reversal pattern, indicating a bearish-to-bullish trend change.
By analyzing each of the figures that are formed as the previous 4-hour candle closed above the neckline, confirming an upside breakout. As per the measured height method, the breakout has opened the doors for a rally to at least $11,000.
When looking for historical data it is find valuable information for those who are dedicated to buying / selling or studying the market behavior of this cryptoactive.
Therefore, historical data show that February has been a good month for bitcoin.
The short-term technical outlook is bullish, with BTC having potential to rise to $11,000.
However, as discussed earlier this week, gains above the $10,000 mark could be transient.
Bearish scenario: Failure to capitalize on the inverse head and shoulders breakout followed by a daily close (as per UTC) below $7,625 (Feb. 2 low) could yield a deeper sell-off to $6,000–$5,900.
The important thing about the information presented is that each one of the investors must always look for the best information that helps to generate trust and certainty for each user, because the final decision is very personal.
In summary the world of cryptocurrencies is very exciting and decision making must be established with a very accurate criterion, emphasize, that you should not risk what is not committed to daily livelihood, without forgetting that the historical in terms of bitcoin prices is upward in the medium and long term. It waits for new ads.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.