Home > News > Bitcoin breaks the $8,000 handle with experts predicting further gains

Bitcoin breaks the $8,000 handle with experts predicting further gains

In the last 7 days bitcoin has experienced a huge 30% rally, reticent of the explosive days in 2017. According to eToro, bitcoin is currently trading above the $8,000 level with a high of $8,309, however with the leading cryptocurrency continuing to break daily highs, further growth is expected.

Throughout the year expert analysts have highlighted the $6,000 level as a major resistance point and posing as a significant blocker for bitcoin to get back to previous highs.

Bitcoin $8000

With the emphatic break we’ve seen, it is no wonder we are seeing the price trade above $8,000. This price level has not been approached since July last year and should the high of $8,474 be broken (which we are very close to at the time of writing this), the immediate target would fall back to the much talked about $10,000 level.

Traders will now be firmly placed on the bullish side of this market, looking for entries at short term support zones or simply breaks of highs. The decision for lots of new investors will be whether they should choose to buy through an exchange or a broker. For ease and speed, buying with a CFD provider like eToro is arguably the more favourable, especially with the increased liquidity a broker can provide. This essentially means you will get to buy at the price you intend to, and also makes selling considerably easier.

Why has bitcoin gone up?

It is still unclear as to the exact reasons for this bull run however there are a few coincidences that could have theorists licking their lips.

Bitcoin a safe haven?

Firstly, is bitcoin now a safe haven? With president Trump fuelling the US-China trade war and both countries breaking the truce, the stock market has seen its largest downturn so far this year. Notorious safe havens, Gold and the Japanese Yen, have both seen increases at the same time bitcoin has seen its rally. An obvious assumption could then be made that bitcoin is becoming a safe haven for investors.

Binance coincidence?

Another interesting coincidence is that all this has happened whilst Binance trading was paused. Due to hackers stealing more than $40 million worth of bitcoin, the cryptocurrency exchange was forced to close its doors for a period of time, in which we saw a lot of the bitcoin rally. Binance CEO, Changpeng Zhao, suggested a roll back of the blockchain, an idea that was immediately shut down by the community. This highlighted the robustness of the cryptocurrency, which in turn may have given investors reason to buy bitcoin.

ICO & mainstream media

Other reasons for the rally could include the retreat of the ICO, which realistically isn’t going to be the catalyst because the ICO market has been retreating since the middle of 2018, and the continued reporting in the mainstream media.

The likes of Bloomberg are still reporting on bitcoin for the institutional investors that continue to trade it. The CME Group reported record volumes of trading on the 13th of May, which is likely to inspire confidence within the crypto market.

Can we expect further gains?

Despite not being able to pinpoint the exact reason for this bitcoin price increase, there are underlying factors that are improving confidence in the market.

From a technical standpoint the obvious new level of resistance to target is that $10,000 mark. Investors interested in entering should be looking at the best places to buy and more often than not that is when you see a pull back, any reductions in the price could offer an opportunity to buy. A notable level would be $7,500 but any shorter term pull back might suffice.

Bitcoin target

Can we expect altcoins to follow suit?

History has stated that when bitcoin goes, the rest follow, and that appears to be the case again this time around. Today Ripple followed suit with a 20% price increase, Ether has been more gradual, but it has also seen a significant increase.

Ripple is likely the one to keep an eye on as it reaches its highest levels of the year according to eToro, with key resistance broken at $0.376. The next target levels would be around the $0.45 and $0.56 handles respectively.

Ripple Target

For those interested in buying bitcoin, we trial various providers to find the best on the market, see below for our current preferences.

1
Min. Deposit
$50
Exclusive promotion
Our score
10
Accepts customers from the USA
Offers 15 crypto coins to buy&sell including BTC, LTC, ETC, NEO and more
Trade on the world's leading social trading and investing platform
Start trading
Description:
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Payment methods
Wire Transfer, Bank Transfer
Full regulations list:
CySEC, FCA
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
2
Min. Deposit
$10
Exclusive promotion
Our score
9.3
The broker offers access to a trusted MetaTrader trading system
Pricing is ensured to be completely transparent, also providing accuracy and speed
Trade a Wide Variety of Assets with Leverage up to 1:500
Start trading
Description:
LonghornFX is a true ECN STP broker dedicated to delivering a superior trading experience to traders no matter their level of experience. Their services are based on transparency, innovation and efficiency, ensuring an unparalleled trading experience for all.
Payment methods
Credit Card, Debit Card, Visa, Bitcoin
Full regulations list:
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.
3
Min. Deposit
$10
Exclusive promotion
Our score
8.7
0% Commission Account
Low Spreads
Eco-Account Option
Start trading
Description:
CedarFX is an eco-conscious broker offering 0% commission trading on 170+ assets, including Forex, Cryptocurrency Pairs, Stocks, Indices and Commodities. With up to 1:500 leverage, no-fee transactions and low spreads, traders can make the most of their funds. CedarFX also offers an Eco Account option to support tree planting and sustainability projects.
Payment methods
Bitcoin, Credit Card, Debit Card
Full regulations list:
Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary seek independent advice.
Tags:

Sign up to our exclusive newsletter today!

Tailored emails

No SPAM ever!

Alt coin news

Unsub anytime

After signing up, you may also receive occasional special offers from us via email. We will never sell or distribute your data to any third parties. View our privacy policy here.