Bitcoin is on track to record a positive month for the first time in 6 months. According to crypto trader Josh Rager, February will be a green monthly candle for Bitcoin if the flagship currency manages to maintain its price above the $3414 mark. Josh added that Bitcoin is working hard to achieve this status, a first since July 2018.
The past few weeks have seen the currency enjoy some positive news. Bitcoin has recovered by 15% to get to $3590 since establishing a 12 month low of $3120. If the trend continues, then Bitcoin will confidently call February, a prosperous month. But that will depend on its success, maintaining prices above the mid $3,000 region.
Will Bitcoin Beat The Resistance Levels Ahead?
The beginning of the year saw its price remain tightly low, between $3,300 and $3,700. The cryptocurrency was unable to initiate a large price movement either way, above or below the resistant levels and important support.
Bitcoin is nonetheless expected to begin its recovery process in the second half of 2019. But by this time, the technical and fundamental indicators will have already indicated an impending bull run. The fundamental indicators, in this case, include the asset chain transaction volumes, activities in the institution and growing infrastructure that is supporting the asset class.
When it comes to short trend analysis of crypto assets, all systems indicate a bearish trend.
According to Mark Dow, former IMF (International Monetary Fund) economist, a break out of the key resistance levels of $5,000 and $6,000 will save Bitcoin from a low price range bloodbath. But if the currency breaks down through the yellow line, holders will have to run.
However, if the currency achieves a green month candle in the remaining weeks of January, it will definitely ease pressure on the market. More so, it could trigger a positive movement and possibly test the crucial resistant levels.
The alternate scenario is the currency lacking strength and volatility and continuing to hold at $3,500-$3,700 regions for a few more weeks. But nobody really knows which way Bitcoin will go.
One of Bitcoin enthusiast going by an alias of Hsaka expects the worst. Hsaka admits he doesn’t have the slightest clue as to the direction which Bitcoin will take. He, however, hopes for the best but is in preparation for the worst- a downside.
Alternative Crypto Gaining Momentum As Bitcoin Is At A Stalemate
Whilst it has been difficult for dominant cryptos to trigger large price movements, alternative crypto assets have done it effortlessly. ERC20 tokens, for instance, has managed to make great gains against the dollar and Bitcoin in the past few weeks.
Tokens are historically known to record positive movements especially when major cryptos like Bitcoin are experiencing sideway movements.
For instance, Binance recorded a 52 percent increase in price in 2 weeks. The positive movement came after a report crediting Binance’s strong financials.
Binance Is Reaping Profits
Even after an 85% decline of the entire crypto market, Binance Chief Financial Officer Wei Zhou says the exchange business is still profitable.
It has been reported that the company generated half a billion in profits last year alone. Binance CEO, Changpeng Zhao had earlier predicted a yearly profit between $500 million and $1 billion.