Bitcoin Gains Bullish Momentum Over $8,500 Level

The crypto market has shown great dynamics since the beginning of this year, Bitcoin has been able to add more than 5% gains over the past hours, breaking the $8,500 level aggressively on its way to reach the next psychological support level of $9,000, and it is noticeable that Bitcoin is currently not finding anyone to stop it with Bullish momentum control.

Analysts believe that Bitcoin breaking the $8,500 level and breaking it strongly means that it will be able to make more gains as it did last April.

Since the beginning of this year, bitcoin trading volumes have increased AvaTrade By 126%, a good sign of an expected recovery after a good period of relative bearishness.

Bitcoin

Bitcoin

The current big jump of bitcoin is due to the CME platform starting to launch bitcoin options trading after the platform's move Bakkt Earlier last December, market watchers concluded that it was professionals who determined the price dynamics in the future, and based on the growth of the Bitcoin infrastructure we see predisposing drivers for a new recovery.

Cryptocurrencies did not create a good mood for investors at the end of last year, but by the beginning of the year they had a great opportunity to sell Bitcoin at a higher price, as it managed to recover from the level of 7200 and surpassed the level of 8500 dollars.

The upward trend of Bitcoin last week coincided with a resounding fundamental event for all financial markets, as geopolitical tensions escalated in the Middle East, some might say that this is just a coincidence, but many consider Bitcoin to be a good hedge.

They reasoned that in 2019 Bitcoin showed a recovery every time the prospects of stagnation in global economic growth increased. , which made investors refrain from risk and buy traditional risky assets, and accordingly, the demand for buying Bitcoin increased and its prices rose.

We can conclude that Bitcoin can be considered more and more as a safe haven asset by traders, allowing them to overcome the uncertainty towards the global economy.

And during the past few days, the global economy faced another danger, the escalating events between the United States and Iran, where “Qassem Soleimani,” a prominent military commander in the Iranian Revolutionary Guards, was killed by a drone strike near Baghdad airport on the direct order of US President Donald Trump, and Iran pledged and a harsh response to President Trump's threats to further strike Iranian targets if Iran takes retaliatory measures.

Tensions escalated between the two countries, and Iran launched several missiles at the military forces stationed in Iraq, but they did not cause significant damage, and as a result, the safe-haven assets of US Treasuries, the Japanese yen and gold rose, and Bitcoin was no exception and also proved to be an enormous safe haven. In one day, it rose 5% to $8,350.

 

Mohamed Abdel Khaleq
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