Bitcoin Eyes $10,000 as Price Stability Turns Into Momentum
Bitcoin extended its winning streak to five days on Saturday, as the spot price came within $34 of the psychologically important $10,000 mark.
BTC/USD Price Levels
The value of bitcoin peaked at $9,967 on Saturday, the highest since early March. Values have now risen 8% over the past five days, bringing bitcoin’s total market cap to $169 billion.
At the time of writing, BTC/USD was valued at $9,918 for a gain of 2.8% over the previous session. An RSI of 63 makes a strong case for continued growth over the weekend. Analysts at Fundstrat Global Advisors have also indicated that a convincing break above $9,700 could generate further upside potential in the short term.
Total trade volumes in bitcoin were valued at $7.8 billion on Saturday, according to CoinMarketCap. That represents more than 30% of the total cryptocurrency market. The most popular exchanges for BTC trades were OKEx, Bitfinex and Binance, based on latest available data.
Bitcoin has enjoyed rare price stability over the past two weeks, with prices fluctuating by the smallest amount in nearly six months.
Bitcoin has been riding a positive tailwind for the past 30 days, with prices rebounding 52% over that period. This has spurred a much larger rally in the cryptocurrency market, with altcoins surging 114% over the same stretch. As a result, bitcoin now accounts for roughly 36% of the total market, down from more than 45% at the beginning of April.
The latest uptrend has been accompanied by positive developments around exchange listings, institutional adoption and the potential for ICO investment in jurisdictions like South Korea. The end of U.S. tax season may have also contributed to the rally, with some taxpayers satisfying capital gains requirements and others re-investing their refunds into digital assets.
Above all, positive sentiment has returned to the market, along with speculators, following a disappointing first quarter. The broad crypto market rebound, now at $220 billion, has been a boon to long-term holders of cryptocurrencies who stuck to their positions even when the times got tough.
As of May 3, the percentage of all cryptocurrency trades ‘in the buy’ was 60%, according to Turtle BC. This figure was as high as 92.9% on Apr. 19.
The cryptocurrency market reached a total capitalization of $471 billion on Saturday, which was also the highest since early March. Cryptos added more than $50 billion in value last week, led by Ethereum’s more than 20% gain.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.