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Bitcoin Breaches $7000 Against Odds

It’s been on a slow and steady rise for the past week but the price of Bitcoin has finally crossed the $7,000 resistance level on Tuesday Aug. 28 after almost three weeks on the $6,000 and $6,800 range. Aside that it comes after Morgan Creek Capital Management announced a new digital asset index fund – a market cap-weighted basket of the top 10 largest cryptocurrencies (Ripple and Stellar not included), the price breach over $7000 is still shaky though. There are no indications that the spike was as a result of new money coming into Bitcoin based on trust but it seems more like it was caused by shorts squeeze probably from inside money.

Sharing his view on the trend, the CEO of crypto pricing data site, CryptoCompare, Charles Hayter, says to 8BTC via email:

“Shorts coming off mean perhaps sentiment is shifting away from the bearish mentality. The price was overly inflated through manic fear of missing out which naturally turned to panic selling for the past six months. The market has seen the momentum of that selling turnaround from lower lows now to a minimum support.”

Now at about $7,100 as at the time of this writing having moved from ~ $6750 earlier in the day, any good news at this point or the infusion of a significant amount of new money into the Bitcoin ecosystem could see the build up to a real rally that may see the price spike above $8,000 or more.

The rise, despite some media attacks and ETF recent rejection, hints at Bitcoin’s growing resistance to external factors as it used to be some months ago. Also, it shows that the correlation between Bitcoin and altcoins seems to be decreasing.

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