Bitcoin has once again quietly crept over the $9,000 mark as the optimistic January bull run continues. Having faltered a little after it last touched $9,000, this second run at staying above this key figure is becoming more and more important in the overall progression of Bitcoin’s price.
Many commentators are looking to call 2020 a year where Bitcoin’s price will skyrocket, and potentially even breach a new all-time high, but there is a long way to go in the year, and also a lot that needs to happen in the short run.
If Bitcoin is to start seeing renewed price action and a generally upward trajectory, it needs to start leaving the single-digit thousands in its wake. Crossing $10,000 and moving from there in the medium term will certainly signal a bull run, but what does it need to do in the short run.
For some, like Tone Vays, calling Bitcoin bullish at this early stage would be dangerous, and not entirely accurate. The outspoken Bitcoin supporter is waiting instead for the coin to show that $9,0000 is a floor it can easily stay above.
In the latest episode of his Trading Bitcoin YouTube series, Vays said he was cautious on calling a Bitcoin bull run
“Am I ready to declare a bull market? No,” he declared.
Vays, using the BitMEX funding rate, an indicator which Vays noted generally runs contrary to others but has a high degree of accuracy, seems to suggest the funding rate is “favouring the bears.”
But, Vays also believes if the price can stay above $9,000 and the 200-day moving average remains up, he might then start to believe Bitocin is behaving in a bullish way.
Generally positive sentiment
Still, despite Vays being more cautious than optimistic, it is hard to avoid the excitement building around the cryptocurrency space, especially ahead of the opinion-dividing Bitcoin mining reward halving.
The likes of Tom Lee, renowned for his optimism, is honing in on the reward having as an occurrence that will drive the price of Bitcoin to new heights, but he also considers the general ill-health of the global economic market.
The potential for Bitcoin to become a safe haven asset in a time of economic recession – something it was partly designed to do following the 2008 collapse – would make the coin an invaluable asset and surely send its price sky-high. However, there is a long road to go for it to prove that potential.