It would appear that 2018 is holding a similar story for crypto’s most beloved currency, Bitcoin, as it did in 2017 (and 2016 for that matter). After a lackluster performance in January, the true believers seem ready to back the virtual currency again and sent it soaring a full 84 percent from recent lows, suggesting from a technical perspective that a bottom is in place, even though analysts are warning a long-term bull revival is still not certain if the price charts are taken into account.
Whereas over the weekend Bitcoin already rose to $11,200 (its highest level since January 29th), that level seemed to hold (allowing for a short bout of profit taking which seems to have pushed the cryptocurrency back below $11,000).
Related coverage: <a href="https://thegoldwater.com/news/18490-Bitcoin-Races-To-10K-Again-As-Buffett-Chairman-Says-It-Is-Poison">Bitcoin Races to 10K again As Buffett Chairman Says it is Poison </a>.
The "V"-shaped rally which we warned earlier about, piercing upright from the February 6th low of $5,900 does seem to paint a bullish picture, it is still a bit too soon to call the head and shoulders reversal.
<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">It’s so strange to think that <a href="https://twitter.com/hashtag/Bitcoin?src=hash&ref_src=twsrc%5Etfw">#Bitcoin</a> is $11,000 and no one is freaking out about it.</p>— Emptybeerbottle (@Fullbeerbottle) <a href="https://twitter.com/Fullbeerbottle/status/965891353333915648?ref_src=twsrc%5Etfw">February 20, 2018</a></blockquote>
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At the time of writing, Bitcoin was trading at $11,339
Meanwhile, the S&P 500 finished the past week with a sixth straight day of gains, finishing once again above its trend channel set in 2016 and 2017 for itself.
Many traders are thus left wondering whether the correction seen in the beginning of February was a ‘hiccup’ or the start of a long-term reversal.