The price of Bitcoin broke a key resistance at $10,000 this weekend and is course to grow 100%, at least according to history. According to analysts, the recent rally has the hallmarks of previous bull runs in which Bitcoin has gone on to double its value.
There has been a substantially consistent price rise leading up to breaking the $10,000 barrier. Now, the analysts suggest that if the cryptocurrency is able to maintain this momentum then it could prompt some unprecedented gains, up to 100%. Accordingly, all the previous rallies with a similar upward trend momentum recorded gains ranging between 14% and 100%. These analysts do not see why this time it would be different.
One of the major indicators cited in this prediction is the buyers’ ability to match the selling intensity instigated by the bears in an attempt to topple the market. The strength and resilience on the buyers side is well visible in the pricing of the asset remaining above the $9,800 following a small correction on Monday.
The current Bull Run is on course to prevail and breach new levels as going by history the price does not usually stick at $10,000. Rather, the market has in the past experienced massive consolidation at this stage in the near term followed by upward extensions in the longer term.
The historical performances of Bitcoin upon breaking the $10,000 price were properly presented by Hsaka, a Twitter-based crypto analyst. According to Hsaka’s tweet, Bitcoin has performed extremely well in the recent past once it broke past the $10,000 barrier. Accordingly, the asset has undergone massive rallies of 99%, 14%, and 26% respectively.
$BTC breaks $10,000.
Prior instances of breaking it after a substantial retrace. pic.twitter.com/M3vloBouYj
— Hsaka (@HsakaTrades) February 9, 2020
The bullish case for Bitcoin is further evidenced by its highly bullish weekly close that is expected to propel the upward trend. According to Josh Rager, another Twitter-based Crypto analyst, this is subject to the condition that the cryptocurrency maintains a price above $9,556 in the near term. This would help Bitcoin to avoid the bear trap that could initiate a downward trend and a huge price retracement.
Regardless if $BTC experiences a pullback after hitting $10k
A weekly close above $9556 would be absolutely bullish pic.twitter.com/dK5fc9v6aP
— Rager 📈 (@Rager) February 9, 2020
So far, this prediction remains on track with Bitcoin trading above $9,800 at the time of writing. Nonetheless, Bitcoin remains a highly volatile asset and is expected to witness explosive price rises and significant corrections in line with its historic performances. The recent rise above $10,000 could potentially induce high market volatility in the near term requiring extra caution while trading the asset.
Image courtesy of Pixabay
Don’t worry, we hate spam too
one weekly digest, just the important stuff.
