We knew it was coming, we just didn’t know when. It was inevitable that bitcoin would soon find its way back above the $4,000 position. Finally, it did so on Sunday 06, marking its all-time high for 2019. Although it has previously hit these levels, it has been stuck between $3,800 and $3,900 for the last two weeks.
A wide market rally saw bitcoin soar by over 5% with prices climbing from $3,800 to over $4,000 in a couple of minutes. With altcoins following the leader’s momentum, the total market cap quickly rose from around $131 billion to over $138 billion.
At the time of press, the market seems to be slowing down with bitcoin dropping back to around $4,040. This means that in the coming hours we could see bitcoin drag back to the $3,900 position where it will continue to frustrate the bulls trying to get it over the $4,000 mark. Nevertheless, this latest test of the $4,000 position will act in the coins favor as it retests it in the coming days.
When bitcoin finally rallies again, it will be able to break the resistance it has now established- around $4,084, and go beyond $4,100.
Should bitcoin maintain above $4,000 for the rest of the day, this will be a sign to be bullish about bitcoin for the rest of the month. Luckily, the last couple of days have seen bitcoin achieve incredible stability and this could help it stay at the $4,000 mark.
According to Mati Greenspan, senior market analyst at eToro, the real test remains at the $5,000 mark. This is true in that it will dictate the coins long-term trend. Once it secures a position above the $5,000 mark this will send out a buy signal with everyone believing it is going to rally as high as $10,000. However, should it not hit $5,000, or hit it and retrace, many investors will find it hard to believe that it will rally again.
Ethereum ETH Price Analysis
Despite an impressive price surge over the past couple of days, today, Ethereum has slowed down and recorded far below what many were expecting. During the surge, the coin only rallied as high as $158 but its key test still stands at $160.
The highly anticipated Constantinople fork remains the ultimate catalyst for the short term with prices expected to surge dramatically.
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