BTCS Inc (OTCMKTS: BTCS) fortunes are slowly turning positive after a roller coaster 2018 that saw it shed more than 80% in market value. Recent price action activity indicates the stock has hit rock bottom and due for a correction higher.
BTCS Share Price Analysis
In recent weeks, the stock has rallied by more than 200% from all-time lows, in what could be attributed to renewed investor interest in the stock. Renewed investor interest comes on sentiments in the broader cryptocurrency sector turning positive.
The Bloomberg Galaxy Crypto Index, which keeps track of all the largest digital tokens, is up by more than 20% signaling renewed investor interest on cryptocurrencies
Cryptocurrencies have turned bullish if a 20% plus spike in price is anything to go by. With Bitcoin spearheading the bounce back, so are sentiments o BTCS improving in the market.
Price action activity has, in recent days, indicated that the stock could break out as investors slowly stream back into the cryptocurrency sector in pursuit if opportunities.
A 200% plus spike from all-time lows has catapulted the stock to a critical technical level a breach of which could fuel the upward momentum. The stock needs to rise and find support above the $0.04 mark to avert further slides.
Above the $0.04 mark, the stock remains well positioned to make a run for one-year highs of $0.10. Conversely, below the critical technical level, the stock remains susceptible to further drops in continuation of the bear trend that began early last year.
What Does BTCS Do?
BTCS is a company focused on Blockchain technologies. The company is exploring the use of ledger technology to enhance operations in various sectors. In addition, it has taken a keen interest in digital currency ecosystems. The company seeks to provide investors with indirect ownership to Bitcoin (BTC) among other cryptocurrencies.
Bitcoin Price Surge Impact
A spike in Bitcoin price from below the $4,000 mark as of the start of the year is the latest development that has taken the market by storm. After plummeting to the $3,100 level, the flagship cryptocurrency has bounced and has in the recent past taken out the $5,000 barrier.
A spike in Bitcoin price is of great importance as it allows the likes of BTCS to generate significant returns from their operations. With the value of Bitcoin edging higher so should mining operations be lucrative something that continues to excite investors.
As Bitcoin continues to register higher highs so are stocks with stakes in the cryptocurrencies showing signs of breaking out, after feeling the full force of short sellers in 2018. BTCS is one of the stocks that remain well positioned to benefit as Bitcoin continues to bottom out after a 70% plus implosion in 2018.
The stock surging after the recent spike in BTC price affirms how intertwined the two are. However, it is not the only stock registering impressive gains in the market. The likes of Remixpoint are already up by more than 20%, Vidente having recorded gains of as much as 20%.
BTCS is likely to continue climbing the ladder as investors resort to chasing the Bitcoin rally. Investors who missed the initial Bull Run are increasingly turning to crypto stocks as a way of gaining exposure to the burgeoning sector.
Reports that the U.S Securities Exchange Commission is in the process of approving two Bitcoin exchange-traded funds is another development fuelling the upward momentum in the crypto sector. Such approvals go a long way in validating a sector that for the longest time has been shrouded in uncertainty and mystery.
With credibility in the crypto sector slowly streaming in, the likes of BTCS remain well positioned to be the biggest beneficiaries given the head start and market share already accrued.
The lows might as well be behind us if a spike in Bitcoin price in recent months is anything to go by. A spike in Bitcoin price should continue to fuel upside action on Bitcoin-focused stocks of which BTCS is a key player in the sector.
Given the volatility in the sector, it might be wise to wait for BTCS to find support above the $0.08 mark, to consider it a long-term investment play and confirm that the lows are in.
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Disclosure: We have no position in BTCS and have not been compensated for this article.