Bitcoin hovers around $9,700 ahead of massive bull's run
|- Bitcoin attempts a recovery from the recent lows, but the upside is still limited.
- In the long run Bitcoin is poised for strong growth, expert says.
Bitcoin has attempted recovery from the recent slump and climbed marginally above $9,700. At the time of writing, BTC/USD is changing hands at $9,705 with short-term bullish bias amid low volatility market. Bitcoin has stayed mostly unchanged in recent 24 hours and since the beginning of Friday. The market share of the first digital asset edged higher to 62.8%.
Bitcoin on the verge of a massive rally
Meanwhile, Morgan Creek Capital's Chief Investment Officer Mark Yusko believes that bitcoin's rally has yet to begin. In a recent interview with CNBC's Fast Money, he said the fundamentals support the bullish forecasts and imply a strong growth in the second half of the year.
The expert mentioned several drivers behind the upcoming rally, including Bitcoins halving and supply and demand situation. In terms of Stock-to-Flow (S2F) model, Bitcoin may surpass gold in the nearest future.
Notably, Mark Yusko emphasized that Bitcoin was not meant as a means of payment. It should be treated as a long-term investment instrument and a store of value. Bitcoin has the best and the most secure system for a store of value, while second-layer solutions like Lightning Network facilitate Bitcoin payments.
BIT/USD: Technical picture
A Morning Star created by Thursday's Doji candle on a daily chart implies that the downside correction may be over and Bitcoin is ready to resume the upside trend. A big green candle will support this view; however, the price also needs to move above the short-term sloping trendline from February 13 high. This trendline resistance located on the approach to $9,900 may slow down the recovery. Once it is out of the way, the upside is likely to gain traction with the next focus on $10,000 and $10,150 ( 50% Fibo retracement for the downside move from July 2019 high to December 2019 low).
On the downside, The initial support is located at $9,600 with an intraday low at $9,576. A sustainable move below this area will increase the downside pressure and push the price towards the next critical support created by the recent bottom of $9,300.
BTC/USD daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.