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Bitcoin Ready for Another Run at $4,000

February 20, 2019 at 15:08 by Matt Jackson

Cryptocurrency investors saw Bitcoin prices briefly reach $4,000 yesterday. While they have retreated back below this resistance level, they remain above $3,900 and look set to rally with another run, backed by the highest daily trading volume of 2019. To support the view that the bulls may be ready for a sustained run, crypto exchange Bitfinex has said that the amount of money placed on short bets against Bitcoin are at a 6-month low.

Crypto enthusiasts have been forced to endure a year-long bull run, with prices falling as low as $3,300 earlier this month, despite reaching nearly $20,000 in December 2017. Many analysts have been waiting for institutional investors to enter the market, but plans for Bitcoin ETFs have been postponed, or halted altogether.

While prices had seen a lot of sideways movement with minimal volatility at the beginning of the year, this has changed in the past two weeks. Prices initially rose from $3,300 to $3,600, with further gains made to briefly reach $4,000 on Tuesday. Although prices retreated briefly back below $3,900 early on Wednesday, the cryptocurrency is currently trading at $3,916.98 at 14:40 GMT.

This recent movement is backed by a considerable increase in volume. Monday saw the highest volume trading figures for Bitcoin this year, and trading reached the kind of volume that has not been witnessed since April 2018. These volume levels have caused some analysts to predict that further and sustained bull runs could be on the cards.

Meanwhile, billionaire investor Tim Draper has said that he expects Bitcoin to be the currency of the future, stating that it will only be criminals that are left holding cash in years to come. Another well-known proponent of the cryptocurrency movement is inventor and entrepreneur Elon Musk. Musk said, on February 19, that he believes Bitcoin to represent a better transfer of value than paper money. He did, however, point out that the major flaw preventing his own companies from using Bitcoin is the fact that it is such an energy intensive process.

It has also been rumoured that Samsung’s next flagship smartphone, the Galaxy S10 range, will include a built-in cryptocurrency wallet. Samsung is due to unveil the next iteration of its smartphones today, and photos leaked in January show a wallet that will accept both Bitcoin and Ethereum.

Bitcoin is currently trading at $3,916.98 while Ethereum has reached $4.68 and Litecoin is $50.29.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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