Bitcoin is maintaining its recovery trajectory, trading at $7,350 as the Bitstamp dust settles, and if Tyler Winklevoss is right BTC is going a lot higher from here long-term.
With the bullish set-up still very much in play, market participants are looking to $7,400 as the immediate hurdle to be cleared as the price retraces. upwards.
Trader DonAlt concurs, seeing $7,400 as the key support level – the thinner green line in the chart below.
Meanwhile, Bitstamp has opened an investigation into what happened on its exchange, which is being blamed by the crypto community for triggering the flash crash after executing a 5,000 bitcoin sell order.
Fears that the market was being manipulated by a whale are overblown and these things are in the nature of the bitcoin market.
Sentiment is still improving for bitcoin as recent research shows.
Weiss Ratings agrees, as shown in this Tweet: “Today, the price of
#Bitcoin abruptly sank more than 20%. Some say this was due to manipulation. #BTC had been going down for 25hrs BEFORE the big order hit at #Bitstamp. This isn’t manipulation – it’s a normal market correction. #crypto #cryptocurrency #altcoins“
But Bitstamp may also be to blame. Some have accused it of allowing a sell algo to take out bids, and potentially could have gone all the way down to 3600. Thankfully it looks like a human being intervened.
In other news, Tyler Winklevoss has been promoting the “bitcoin is digital gold” thesis to great effect by comparing their respective market caps.
We’ve done the math(s): $7 trillion divided by 21 million (the supply cap of bitcoin) gives us a bitcoin price of $333,000.
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK’s second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane