3 Reasons why Bitcoin will Rise in Price to $ 10,000. Analyst opinion.
Kataryna Kovtun July 24, 2020
Analyst Omkar Godbole explained what speaks in favor of the growth of the cryptocurrency rate and what role the US government will play in this
The First Reason for Bitcoin rise in price
The bitcoin rate will rise to $ 10,000 soon, analyst Omkar Godbole suggested. According to him, three key factors speak in favor of the imminent rise in cryptocurrency prices. The first is the volatility return.
Godbole explained that the price of the coin has long been squeezed in a narrow range between $ 9000 and $ 10,000. Volatility has dropped, which proves the convergence of the Bollinger bands on the Bitcoin chart. They form a channel, after leaving which the course, as a rule, begins to move sharply, but you cannot know the directions.
The Second Reason
In the current situation, it is more likely that the asset price will go up, the analyst said. For argumentation, he called the growing interest in cryptocurrency from institutional investors. The number of open positions to buy BTC on the Chicago Mercantile Exchange (CME) has increased by 24% over the past 3 days, the expert said, citing data from the Skew analytical service.
The Third Reason for Bitcoin rise in price
The third reason that speaks in favor of the rapid rise in the value of bitcoin, Godbole called the growth of investors’ appetite for risk. Equities are recovering, with the S&P 500 hitting a new five-month high. The EU and the US intend to continue to allocate funds to support the economy, which creates additional drivers for the growth of share prices. This increases the confidence of market participants in its stability and makes them look for riskier and at the same time profitable assets.
Aside from Bitcoin, Ethereum could also show a rapid rise in price. Today, July 23, the analytical service Santiment reported that over the past three days, large investors transferred 700,000 ETH to exchanges. Such activity is similar to the preparation of “whales” for the rise in the price of the altcoin.
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