Will $8000 be Bitcoin's Next Target?
Bitcoin (BTC) has just experienced yet another rally in the past 24 hours of roughly 5%. This brings Bitcoin's price back to $7500; a price Bitcoin hasn't seen in roughly a month. This essentially could signify a return to normalcy of sorts for the cryptocurrency markets after the Covid-19 crash.
Should the rally continue we could see Bitcoin test upper resistance at $7697 and later on closer towards $8000.
Coronavirus Market Decline
Bitcoin took a harsh tumble on the 12th of March which seemed to mirror most global stock markets such as the Dow Jones, Nasdaq, and London-based FTSE. The price per BTC dropped from around $7,500 on the 12th to $6000 in 24 hours. Bitcoin continued its decline shortly after and reached a yearly low of $4,978.
It appears that the road to recovery was rather short for Bitcoin and cryptocurrencies in general. The Dow Jones is trading at 23,752.53 roughly 5000 points below its rate before the global health crisis. The Nasdaq Composite has also been recovering but has yet to reach pre-Coronavirus levels. Commodities have largely varied with WTI crude oil being hit the hardest.
One of the possible reasons for Bitcoin's price rally might be excitement for Bitcoin's upcoming halving which is due to take place in 18 days. The halving will reduce the rewards miners receive by half for maintaining Bitcoin's blockchain. Instead of receiving 12.5 BTC miners will receive 6.25 BTC.
The increased scarcity will likely push Bitcoin's price upwards. Although some speculate Bitcoin's price will rise on the day of the event, it will likely be more of a gradual climb.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado