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3 reasons why Bitcoin's price exceeds $ 9,000

The number of bitcoins has exceeded $ 9,000 over the weekend, bringing cumulative gains since the beginning of the year to more than 150%.

The main cryptocurrency in terms of market value reached a record of $ 9,391 on Bitstamp Sunday and reached its highest level in 9 months, or $ 9,200, which represents a 22% increase over the price floor of $ 7,524 recorded last Monday.

Cryptocurrency market experts and investors have combined the strong price hikes seen over the last six days with a number of factors, the main one being Facebook's upcoming incursion into cryptocurrencies.

Facebook will launch 'GlobalCoin'

The social media giant is expected to unveil its own newsletter, which will be called GlobalCoin on Tuesday, June 17, and is expected to be launched in 2020.

The project would already have the support of more than a dozen companies and would have accelerated the widespread adoption of cryptocurrency by many people, including: Barry Silbert, founder and CEO of Digital Currency Group.

Spencer Bogart, General Partner of Blockchain Capital, believes that Facebook cryptography efforts are among the most optimistic external winds for bitcoins in 2019/2020, as they will help reduce friction when acquiring digital assets in creating a circular economy.

In addition, the investor community agrees that Facebook's crypto will make it clear that a private currency, issued by a non-central bank, may exist, which will lead to increased adoption of bitcoin and other cryptocurrencies. .

The hype of GlobalCoin probably put a bid under the cryptocurrency over the weekend. This, however, makes BTC vulnerable to "short" trading after the planned launch of the White Paper on Tuesday.

Binance.com bar the American customers

Binance.com, the largest cryptocurrency in the world by trade volume, updated its terms of use on June 14 to exclude all users in the United States.

The announcement resulted in a massive sale of its native asset, Binance Coin (BNB). The NBB 's price fell 12.8% to 25,209 satoshis (a satoshi representing 0.00000001 of a BTC) on Friday, and a minimum of one month to 34,906 satoshis on Sunday.

The slide indicates that investors extorted money from the NBB and possibly bitcoin, pushing cryptocurrency in the lead, as Alex Kruger – a leading technical and fundamental analyst explained.

Litecoin gets closer to the event "in two"

The next halving of Litecoin (LTC), scheduled to begin on August 5, 2019, will cut the profit from cryptocurrency by half, meaning that LTC will become a rarer asset globally.

"Halving", as it is known, generally results in an overall increase in value for the cryptography markets, as the assets themselves become more difficult to obtain and therefore increase in value.

Litecoin has already grown by 353% this year and may have fueled the bitcoin price rally. It should be noted that litecoin pushed the broader markets higher in the first quarter, with gains of 100% over the period.

And then?

As noted above, Bitcoin could experience a decline following Facebook's announcement on Tuesday. The long-term charts, however, indicate that any corrections may be short-lived.

Weekly and monthly charts

Bitcoins jumped 17.57% last week (top left), canceling the bullish opinion put forward by the close of the previous week below the $ 8,000 mark.

In addition, 5-week and 10-week moving averages are north-facing, indicating a bullish pattern, while Chaikin's cash flow signals the strongest buying pressure since December with a reading greater than 0 , 32.

The bullish case seems stronger if we take into account the breakout of the downward channel on the monthly chart (top right).

As a result, BTC could reach $ 10,000 in the coming weeks. In the short term, a decline in prices can not be ruled out.

Daily chart

BTC released Sunday a record high over 13 months exceeding $ 9,300, but has not closed at more than $ 9,097 – the highest of the bearish inversion candle created on May 30th.

Another failure to achieve a UTC close above US $ 9,097 could lead to profit taking on the long positions, leading to a decline in prices on the 200-hour moving average, currently US $ 8,300.

Disclosure: The author does not hold any cryptocurrency at the time of writing

Bitcoin Image via Shutterstock; litecoin divider of halves via Litecoin Blockhalf

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