Bitcoin (BTC) again shows a strong increase. The recent bullish movements of the bitcoin rate are, according to some, due to the economic tensions between the United States and China. Nevertheless, analysts remain cautious. For example, analyst Josh Rager expects a pullback.
At the time of writing, the price of bitcoin (BTC) is $ 12,169 according to CoinMarketCap after having increased in value by 4.22% in the last 24 hours. With the altcoins still lagging behind at this moment, bitcoin dominance continues to rise to a level of 68.5%. The bitcoin dominance was so high for the last time in April 2017.
The second-largest cryptocurrency based on market capitalization, ethereum (ETH), is currently worth $ 234.28 after an increase of 1.9%. Ripple (XRP) is still in third place, which after a fall of 0.24% is now worth $ 0.3232. We also see that litecoin (LTC) is getting ever closer to number 4, bitcoin cash (BCH). LTC’s market capitalization is only $ 50 million lower than that of BCH. We may, therefore, see litecoin in fourth place soon!
In recent days, there has been increasing purchasing pressure on the bitcoin (BTC) market. The BTC rate experienced some resistance in the $ 11,500-11,800 area but now seems to break out of it.
The current rally can be considerably strengthened by the possible devaluation of the Yuan in China. That threat has led to an outflow from the fiat currency. Some analysts think that part of that outflow will end up with bitcoin.
Bitcoin is increasingly being used as a potting agent to protect against the economic uncertainties in the world. Now that the trade war between the US and China is in full swing, the outcome of that conflict remains uncertain. Tom Lee from Fundstrat said about the use of bitcoin as protection against such conflicts:
Bitcoin has really been correlated with the dollar for the last few years … This year, bitcoin has moved away from it, because the dollar has fallen and bitcoin has risen. BTC is also negatively correlated with the stock market and positively correlated with gold. I think bitcoin proves to be a hedge against global risks.
Bitcoin rose less than an hour ago by $ 12,000. A nice price move, but still Josh Rager remains cautious. He expects a pullback:
Price cannot continue to rise forever
Expect a possible bitback of the bitcoin price, either at this level or higher than $ 12k
But that does not necessarily mean bearish
It is no more than normal to consolidate and even fall back after a strong movement
I remain bullish unless there is a close below $ 11k
Price can't push up forever
Expect an eventual pullback from Bitcoin price whether at this level or above $12k
But that doesn't mean bearish
It's only natural to consolidate and even retrace after a strong move
I'll remain bull bias unless a close under $11k
— Josh Rager 📈 (@Josh_Rager) August 5, 2019