Bitcoin—the Power Needs Over $10k to Set an All-Time High
Bitcoin and its price have been a talk of the investor’s town due to its recent volatile movement. It was during the weekend when the largest cryptocurrency by market capitalization was seen trading above $11k, while currently has recorded a steep dip wherein BTC lost over 3% from the highest of yesterday until the lowest, today till the time of writing.
Bitcoin price movement is majorly due to demand and supply forces that eventually lead to a change in the price of the crypto. However, these two are not the only factors behind the change in the price of BTC. There are a majority of the factors responsible for the price dynamics of Bitcoin and cryptocurrencies. Nonetheless, the current market sentiments are drawing a negative bias, but Bitcoin as an asset has been ahead of indexes like the S&P 500, NASDAQ, gold, etc.
However, it was on the weekend when the currency was ruling the throne, and it was then when the short-term target appeared clear at $11.5k. Currently, it is back to trading around $10.6k at the time of writing. Moreover, Bitcoin has been affected by multiple factors in this year until now, the major one being Coronavirus Pandemic; however, it held strong support too. But for around 11 weeks, BTC was seen trading between $9 to $10k, which has been the longest consolidation period so far. It was towards the end of July and in the previous month when BTC price was seen soaring, wherein little did we know that it would drop in the next range for a consolidation, i.e., between $10k to $11k. According to the BTC prediction, if the current movement of BTC is supported with a remarkable recovery, we can expect a spike above $12k before the next month-end and a persistent trade thereafter. However, we cannot ignore the fact that BTC needs to strengthen by over $10k to breach the All-Time High, which has everyone’s eyes.
We cannot ignore the fact that Bitcoin price spurred as high as $12.5k in the previous month with all the bullish forces and price rally at that point in time. However, all the far-fetched gains were lost when the bears entered since the beginning of the ongoing month. The recent sharp fall has led to a complete bearish divergence after a psychological bullish move above $11k on the weekend.
After the first factor—the Pandemic, the US election is likely to be the most impactful to change the price of Bitcoin and peers right before it starts.