After taking a dip to $6,524.55 on Monday, Bitcoin (BTC) is once again trading above $7,500.
When reports broke out on Nov. 21 of a raid and shutdown of the Binance Shanghai office by chinese authorities, BTC and the rest of the crypto market reacted adversely by being red through most of the day. The selling pressure continued through the weekend and hit its lowest point in six months on Monday.
Bitcoin quickly recovered and was back above $7,000 before the day ended. Currently, it’s trading above $7,500. For BTC bulls, they’d like to see the most popular crypto be back in the five-digit levels, but for one analyst, a key resistance level must be broken before eyeing the next technical target.
Cointelegraph contributor and crypto analyst Horus Hughes sees Bitcoin reaching a $7,800 even to $8,100 in the immediate term provided that the crypto closes above $7,400. Hughes also deems it unlikely that BTC will drop to $5,500 but maintains both bullish and bearish scenarios.
“One would like to think that a drop to $5,500 will be avoided if bulls can keep the price above $7,300 and $6,700,” Hughes wrote.
Buying Bitcoin for the long run
Is there a reason to buy and hold BTC or “hold” (as the crypto world calls it) at this point? For Sebastian Sinclair of Coindesk, what happened to BTC recently are just minor bumps for the crypto compared to what’s in store for it in the future.
Sinclair offered four reasons why the future looks bright for BTC. The first one is that Bakkt futures are improving with an all-time high of 2,728 contracts traded on Nov. 22. The second is a safer platform like FDAs for institutional investors to sink their teeth into crypto, which Fidelity Investments launched this year.
Third, Sinclair noted that first-time buyers of BTC have double, and this was tracked using Square’s Cash app. Lastly, he wrote that the fundamentals are quite different from the high of December 2017 with the hash rate has tripled, which means that computing power for the BTC network has improved.
However, it seems like the current sentiment of the crypto market is not too optimistic. One of the gauges that Hughes included in his analysis is the Crypto Fear & Greed Index, and currently, what it shows is that the market is in Extreme Fear, and it was the same case as yesterday. The month before, it was Neutral.