Could We See Bitcoin Back at $10,000 Soon?
Earlier today Bitcoin (BTC) had quite a spectacular rally. Its price went from $7729 on the 29th to $9200 earlier according to Coingecko. This near 20% price increase did not last for too long as the market had a correction and the price headed downwards back to $8797 where it is trading currently.
On a weekly view it seems that Bitcoin formed a near perfect head and shoulders pattern. While in the short term it is plausible that BTC could decline slightly further down to the $8600 range. The trend still seems to be very bullish in daily and weekly charts.
Bitcoin's trading volume correlated with today's rally and has been especially high. It has reached levels of $72,036,470,259 the highest seen in more than a month. The last time Bitcoin's volume reached similar levels was on the 14th of March during the Covid-19 crash, when Bitcoin's price collapsed to $5400.
Bitcoin & Financial Markets
Bitcoin's recovery from its March lows has outpaced nearly every market with a slight exception to gold, which is nearly at its yearly high at $1703 per kilo. This might be due to a return to normalcy in some Western countries as they relax "stay-at-home" orders. Most other markets are still recovering from the drop in March. This includes indices such as the S&P 500, the Nasdaq composite, and Germany's DAX.
It seems that Bitcoin has been the best performing asset of 2020. This was even noted by many on Twitter including the CEO of Pantera Capital, Dan Morehead who posted on the subject.
Another factor in Bitcoin's rally is most likely in play is Bitcoin's halving, which will take place in 11 days. After the halving, block rewards will be cut from 12.5 BTC to 6.25 BTC. This will limit the supply of Bitcoin on the market and increase its scarcity.
Current market conditions make it seem plausible for Bitcoin to retrace its previous all-time-high of $20,000. Many analysts believe we could see Bitcoin at much higher rates than its 2017 all-time-high. While this is completely possible, it might take months.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado