The most popular crypto by market cap opened at about $8,326 on Sunday and made its way to almost $8,600 by late evening. The start of the week had some bearish undertone too, and the initial estimates were that BTC risks dropping due to some key technical factors.
I cited Haejin's chart analysis on my article for IB Times. Haejin noted that BTC failed to close above the 200 moving average, slipped out of a rising wedge (which has a bearish bias), and missed getting over a critical macro resistance.
All of these recall a similar pattern that occurred two years ago in the crypto bear market of 2018. Haejin's analysis pointed out that BTC is in danger of falling to $3,300.
Staging a comeback
By Monday, Bitcoin almost hit $9,000 and was a hair away from closing above the 200-day moving average as it concluded the first day of last week at $8,995, according to Coinbase prices.
Also on Monday, German investment bank Deutsche Bank published a report about the future of payments (which is a pretty interesting read) and remarked how BTC is "too volatile" to be a reliable store of value.
In that report, Deutsche exalts cash, played up its resilience despite the disruptions and innovations it faced for over the last century. And the bank blazoned how cash is here to stay for decades to come, but it did note that the world will increasingly turn to digital payments.
As for cryptocurrencies, the bank reports that it still needs further experimentation before it gets to the kind of adoption that most in the crypto space expects it to be.
By Tuesday, the king of cryptos eventually poked the $9,000 level again -- the last time it traded at that price was back in November.
Former eToro analyst Mati Greenspan called the attention of crypto Twitter to a downward channel drawn from BTC's June 2019 high and the 200 daily moving average that BTC broke out of.
The price above the 200 DMA is significant, considering the extremely bearish signal in the death cross pattern that appeared back in October.
Up at that point, Bitcoin was on a three-day rally and a large part of what caused it was attributed to Twitter CEO's Jack Dorsey's developments to the crypto: a kit that will help integrate the Lightning Network to Bitcoin wallets and a patent for fiat to crypto payments.
These developments solve the speed issue with BTC transactions and the price volatility; those are also what it takes for the flagship crypto to reach a value of $250,000 by 2023, according to billionaire Tim Draper.
So, it could be likely that this is the reason why BTC had pretty much a solid week.
Tesla vs. BTC
By Thursday, Bitcoin reached its highest price this year at $9,574, but despite this, it was still outmatched by Tesla's stock that was on a tear since its surprise profits in Q3. Matti Greenspan was also the one who made this observation. Tesla by Friday was up 52 percent for the whole month of January, and Bitcoin, on the other hand, rose a respectable 31 percent. However, I wrote in my article that even if it blows past $10,000, it still can't eclipse Tesla in January.
$200 by February?
The top altcoin, Ethereum, was trading at $170 on Tuesday, and a popular analyst who goes by Satoshi Flipper on Twitter said that it might surge to 100 percent soon. Satoshi Flipper's rationale for his bullish forecast is because BTC's "halving," which had been positive in the past for Bitcoin's price, will carry over to other cryptocurrencies.
Satoshi Flipper also predicted that ETH would be $200 by February. So far, ETH is only $10 short of that figure as of the time of writing.
Virgil Griffith, the ETH developer who got arrested for teaching North Koreans about cryptocurrencies, pleads not guilty to the charges of violating the IEEPA or the International Emergency Economic Powers Act.
Griffith was warned against taking the trip by the U.S. Treasury Department's Office of Foreign Asset Control, but he didn't heed the warnings and went to China first to get to the reclusive state.
Griffith, who is currently release on a bail bond worth $1 million, awaits trial on March 17.
TRON has gone too far?
On Monday, Tron announced that it would dedicate its upcoming summit to the late Los Angeles Lakers legend Kobe Bryant. Bryant was killed in a helicopter crash on Sunday, along with his daughter and seven other victims, a devastating event that shocked the entire world.
This move by Tron was frowned upon by several observers because it's seen as another hype generating gimmick that Tron that has a history of -- but this time, Tron may have gone too far in leveraging Bryant's death.
Write to Ron at firstname.lastname@example.org.