After seeing weekly lows in the $7,000 range, Bitcoin saw a price over $10,500 Friday. Analysts predict the bulls, strong on pro-blockchain vibes from China, aren’t done yet, with probable other similar gains.
China’s President Xi gave blockchain a strong endorsement on Friday, saying that his country should seize the opportunity to adopt the technology.
Bitcoin’s Hunt for Red October Comes Up Empty
Chinese regulation on cryptocurrency has been hot and cold, with most speculative practices officially banned in 2017. A court upheld a citizen’s right to own cryptocurrency and for it to be treated as property the following year.
Now high-ranking Chinese leaders are giving the nod to blockchain technology, all of which puts wind in the sails of Bitcoin bulls.
Volumes at Binance, one of the few verified exchanges in the top 10 at Coinmarketcap.com by press time, had spiked over 300% in the 24 hour period. That market was showing BTC at $9624 by press time, about $1,000 short of the weekly high.
Crypto markets haven’t seen major moves like this for some time. Could the good old days of massive bull activity be back?
Certainly we’ve learned a lot since 2017. Rather than a daily rash of ICOs, this time around we’re seeing an exchange-backed token offering (IEO) every now and then.
This alone creates a smaller demand for baseline cryptocurrencies such as Bitcoin or Ethereum, both of which were wanted by normal investors in order to get in on what they thought were great opportunities.
December 2019: Back in Black?
If Bitcoin were to repeat its performance of two years ago, by rote we’d see upwards of $50,000 by December, with a decrescendo beginning in January.
The price would trend in a tight range for many moons before the halvening, at which point we might expect another explosion.
If we’re going to see a sustained bull run in Bitcoin again, it will most likely be propelled by external events, just like most past runs have been. If we attribute Friday’s spike to positivity regarding China, then we can’t expect much growth beyond that, for now.
But just as the whims of a government can push a billion dollars in or out of crypto, a few more hedge funds could wake up this week and decide to push the gas on the Bitcoin price once more.
More likely, though, we can expect another period of tight range trading.
Please note that this article is not financial advice.