According to Bitstamp data, Bitcoin is trading at USD $8,105.69 on May 21 00:29 UTC. Coinmarketcap data has a slight variance as it is indicating that BTC pair to the USD is trading at $$8,021.18.
Although the current price is a plunge by 0.29% in the last 24 hours, it still shows that Bitcoin has been bullish in the last 7 days as the price closed on a low of $7, 832 on Monday, May 13, 2019, at 23:59 UTC according to Coinmarketcap Bitcoin price chart.
In the middle of the week, BTC/USD pair peaked at $8,320.82 against a low of $7,038.12. In the last 24 hours also, the high was $8,261.94 and the low was $7,678.78.
These short-term highs and lows show that Bitcoin is rallying and it is consolidating its value to establish itself as a strong level of support on the upper side of $8,000. Analysts believe that the best condition that could further fuel the Bitcoin surge is an establishment of a strong level of support at $8,300 which is not far-fetched as BTC peaked at $8,320 in the last 7 days.
What Triggers The Bull Run?
The Trump Factor
Trump economics is both famous and infamous depending on the political ideology of a person. Nevertheless, the US President Donald Trump has increased US tariffs on $200 billion worth of Chinese imports from 10% to 25%. China has since responded with raising a tariff on $60 billion worth of US goods to show Trump that they will not take his “bullying” lying down.
Jesse Cohen, a senior analyst at Investing.com, believes that many Asian traders are turning away from Asian stocks and commodities in favor of Bitcoin and this is leading to the current overbought condition-driven rally.
The Fed Reserve Concern
Stephen Moore, a senior Trump campaign adviser, and the president have been calling on the feds to lower the interest rate on the assumption that high rates contract the economy. However, Michael Novogratz, a former hedge fund manager, dismisses the assumption by suggesting that it only applies in a recession.
This concern has the potential of making investors skeptical of mainstream commodities and this could be alluring them to decentralized Digital Tokens such as Bitcoin.
The New York Consensus conference has ended in last week had brought together Blockchain stakeholders and creating a media buss about Bitcoin and Blockchain.
Simon Peters, an expert trader from eToro, believes that the Conference is one of the factors behind the surge as major companies such as eBay, Whole Foods, Starbucks, and Barnes & Noble announced Blockchain projects.
Bitcoin Blockchain Soft Forks
Technology developments are making Bitcoin easier to use in various use-cases. For instance, the Lightning Network that was in trial with the torch Programme where leading Bitcoin enthusiasts such as Jack Dorsey participated in Q1 2019 and other forks are making Bitcoin platform easy to use as well as fast and efficient.
The upgrades are leading to increased adoption of Bitcoin payment by merchants which makes Bitcoin to be more acceptable. For example, Flexa’s Spedn is a platform that allows leading US retail stores to accept Crypto payments.
Is Bitcoin Likely To Surge To $20,000?
Michael Novogratz on May 9 told CNN business that Bitcoin could tripple its then price of $6,000 to regain its peak price of $20,089 of December 17, 2017. At the current bull rally and positive events, it is highly likely that the market is headed for a new high in an unforeseeable future.