Over the past couple of days Bitcoin (BTC) has incurred a significant influx of buying pressure that has sent its price skyrocketing towards the upper-$11,000 region, which has proven to be a slight level of resistance for the cryptocurrency.
Despite facing some resistance, the current rally may be significantly bolstered by China’s possible devaluation of the Yuan, which has led to an outflow from the fiat currency and – as some analysts believe – into Bitcoin.
Bitcoin Surges Towards $12,000 as Buying Pressure Mounts
At the time of writing, Bitcoin is trading up over 8% at its current price of $11,720 and is up significantly from its daily lows of $10,900.
Over a one-week period, it grows increasingly clear that BTC is in the throes of a full-fledged uptrend, as it has surged from lows of $9,400 to highs of $11,800 that were set yesterday, although it does appear that there is some resistance at this price region.
This bullish price action came about after a long period of downwards pressure that was first sparked in late-June when the crypto surged towards $13,800 before plunging to lows of $9,100.
Josh Rager, a popular crypto analyst on Twitter, explained in a recent tweet that BTC is bound to face a pullback in the near-future, but further added that he is still bullish so long as the crypto ends the day above $11,000.
“Price can’t push up forever. Expect an eventual pullback from Bitcoin price whether at this level or above $12k. But that doesn’t mean bearish. It’s only natural to consolidate and even retrace after a strong move. I’ll remain bull bias unless a close under $11k,” he noted.
Price can't push up forever
Expect an eventual pullback from Bitcoin price whether at this level or above $12k
But that doesn't mean bearish
It's only natural to consolidate and even retrace after a strong move
I'll remain bull bias unless a close under $11k
— Josh Rager ? (@Josh_Rager) August 5, 2019
Could Chinese Investors Be Driving This BTC Rally?
Because of the ongoing trade war between the US and China, many investors are concerned that China has decided to devalue its Yuan currency, which has led some crypto analysts to believe that Chinese investors are leaving the Yuan in favor of BTC, thus driving the current rally.
Alex Krüger, a popular economist who focuses on cryptocurrency, mused this possibility in a recent tweet, saying:
“$USDCNY popped $7 as China’s central bank fixed it at 6.9225 (+229 pips), signaling market had green light to trade it higher. They later reinforced the message by stating “Foreign Exchange Market Can Find Its Balance On Its Own”. Did $BTC front run the central bank’s decision?”
$USDCNY popped $7 as China's central bank fixed it at 6.9225 (+229 pips), signaling market had green light to trade it higher. They later reinforced the message by stating "Foreign Exchange Market Can Find Its Balance On Its Own".
Did $BTC front run the central bank's decision? pic.twitter.com/dtlI4j6YJB
— Alex Krüger (@krugermacro) August 5, 2019
As the trade war and global instability continue to unfold, if Bitcoin continues climbing higher then its status as a “Digital Safe Haven” may be bolstered.
Featured image from Shutterstock.