- Bitcoin has increased by more than USD 1,300 to USD 8,327.60 since January 1, 2020.
- Analysts blame current political developments worldwide for the sudden rise in prices.
- Altcoins that also benefit more than average are Litecoin and Chainlink.
Bitcoin has had a strong start into the new year and since January 1, 2020, has risen from just under USD 7,100 to a new 30-day all-time high of USD 8,337.67. The BTC price has risen 5.65% in the last 24 hours and gained 10.65% in the last 30 days.
Despite the rapid rise, experts in the industry are warning against talking of bullish momentum even now.
Conflict between Iran and USA drives Bitcoin price
Increasing tensions between Iran and the United States of America have been exacerbated by the recent events surrounding Iranian General Ghassem Soleimani. These developments have led to further socio-economic repercussions that affect the economy on a global scale. Crypto analyst and CEO of Three Arrows Capital, Su Zhu, has tweeted the most important events of the last few days. He describes:
1) Iran pull out of 2015 nuclear deal
2) Iraq parliament calls for immediate evacuation of all foreign troops
3) Trump threatens disproportionate retaliation
4) 3 katyusha rockets fired at US embassy in Baghdad
The sanctions announced by Trump caused great unrest on the markets and led to a rise in the price of Bitcoin, oil and gold. Multiple billionaire Mike Novogratz also sees a strong correlation between the further escalating developments in the Far East and the difficult situation in Iran. He explains:
The more I analyze this Iranian situation, the more bullish gold and $btc I become.
Experienced Bitcoin trader Josh Rager explains that Bitcoin has broken out of the 2-month range, but the trend reversal has not yet been confirmed. Bitcoin must first break another strong resistance along the USD 8,400 mark before the supposed trend reversal can be confirmed and a bullish momentum can be spoken of.
Really nice candle to break out of the two-month range… but trend reversal not confirmed yet
My eye is on the $8400s where price was held down in the previous range before the pump and pullback in Oct/Nov
Price can continue to push up to this area, imo pic.twitter.com/x1cOBaMN1u
— Josh Rager 📈 (@Josh_Rager) January 7, 2020
Forex and Crypto Trader Mayne urges caution as the current price rise needs to be confirmed first. In his opinion, the last candle has collected many shorts and is now facing strong resistance. He will buy the dip if it occurs in the next few hours.
Cantering Clark, another popular trader, describes on Twitter that he is also happy about the euphoria of the community. However, he points out that such a development has already turned in the past and a strong correction followed.
Listen man….I don't want to bum anyone, because a move is a move if you caught it.
— Cantering Clark (@CanteringClark) January 7, 2020
Within the top 20 cryptocurrencies, besides Bitcoin, Litecoin with a price increase of almost 5.86% to a price of 47.98 USD and Chainlink with a profit of 10.86% to a price of 2.24 USD have benefited the most.
Will Bitcoin confirm the short-term trend?
Only in the coming days will it become clear whether the bulls are able to keep Bitcoin above the important support level of the USD 8,000 mark. If Bitcoin is able to stay above this important level over the next few days, a trend reversal with bullish long-term prospects could be initiated. However, it is now too early to draw premature conclusions from the current price movements.
As we reported earlier, citizens in crisis-weakened countries are turning to alternative assets when their own national currency shows signs of depreciation. Bitcoin is seen as a presumed store of value, in which the inhabitants of crisis countries flee with their capital in order to secure the value that still exists.
A few days ago, the price of Bitcoin in Iran rose to an all-time high of over 24,000 USD. Messari founder, Ryan Selkis, describes how Iranians use BTC to escape the financial threats (freely translated):
Bitcoin is trading at nearly $24,000 in the USD equivalent of Iranian Rials on LocalBitcoins today. It’s unlikely those purchases are paying for the Iranian military’s response. Instead, it might be innocent (and desperate) Iranians looking for a way out of the coming chaos.
It remains to be seen whether Bitcoin can break through the next resistance and achieve further growth.