Kataryna Kovtun May 8, 2020
Bitcoin made a breakthrough, very close to the psychological mark of $ 10,000.On the night of Friday, May 8, the largest cryptocurrency reached $ 9900. This is the highest level since mid-February 2020.
Traders believe that Bitcoin is just starting a rally and could reach $ 15,000 in Q3. The uptrend is fueled by many positive factors.
Historically, the $ 10,000 line has always acted as a psychological level for the price of bitcoin. A breakthrough such an important level in a short period may indicate the resumption of growth.
$ 14,000 — $ 15,000 is a Range of Strong Resistance
Now, bitcoin has broken a multi-year cycle that dates back to December 2017. A further achievement of $ 10,500 would confirm the start of a new cycle. Which may be the basis of a new strong rally.
In 2019, bitcoin grew to $ 14,000 on major exchanges. In December 2017, both monthly candles closed at the same level. This suggests that for the medium term, the resistance level of $ 14,000 remains key.
Exceeding bitcoin range from $ 10,500 to $ 11,000 or its consolidation above $ 9500 should lead to the fact that the main cryptocurrency, however, will test $ 14,000. Also, given the tendency to overvalue in the form of a long wick, there is a possibility that the coin will grow to $ 15,000.
The Effect of Halving on the Bitcoin Price
The long-awaited bitcoin halving will occur on May 12, in less than 4 days. The market is waiting for a denouement around the bitcoin halving. Below we will talk about two main options:
- Growth to $ 10,400- $ 10,500 before halving, and then fall. The growing interest in Google Trends halving speaks in favour of this option. As well as entering the market for new money that goes into Bitcoin and increases its dominance. As you know, the crowd in the market never wins, and if the crowd expects growth and buys, the market will go down.
- The fall right now (today or at the weekend) to $ 8800- $ 9000, resetting the crowd stops and moving to $ 10,500 next week from there.
Historically, bitcoin grew in about 10–11 months by 1200% — 6000% after previous halvings. Bitcoin also usually experiences gradual growth after halving. Bitxmi analysts have every reason to believe that the main cryptocurrency will restore its historical maximum of $ 20,000.
Opinions of Other Analysts
Billionaire Mike Novogratz announced that the Bitcoin rally is just beginning. He urged investors not to miss an opportunity before a new jump in prices. The founder of the crypto-trading bank Galaxy Digital noted that bitcoin still has not set a new price record this year. In his opinion, this gives BTC more room for growth.
Novogratz added that this time he is not going to sell BTC at $ 12,000 due to a new wave of cryptocurrency adoption and technical indicators.
According to Denis Vinokourov, the head of research at the British company Bequant, a breakthrough above $ 9,600 is only the next stage in the long-term strengthening of bitcoin. However, the same expert doubts that we will see an explosive BTC rally. Climbing will be gradual and with modest indicators.
Analyst Joe Deepaskale, head of the BitBull Capital crypto fund, also expects a gradual strengthening of the BTC rate. An important event in the coming days will be a reduction in the reward of miners (halving).
We are now witnessing a big sensation, the source of which is the media. Journalists and experts are fueling investor interest in crypto, which will naturally push its price higher than current values, Deepaskale predicts. He admits such an option, in which, before halving, Bitcoin prices will add. And after this event, we will see a significant rollback of the coin, for example, up to $ 8000.
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