There is so much volatility in the price of Bitcoin, which has pushed it to an upward trend. Right now, it is geared to a $9500 resistance level.
The underlying strength that the cryptocurrency build made it to be bullish and the trend is unlikely to change. This has made analysts predict that it is headed to the $14,000 level if it just surpasses its resistance level.
The price of bitcoin passed $9000, making it reject its current price level. The rejection did not last long as Bitcoin propelled to the mid $9k level region. So far, BTC has had three rejections between the level of $9400 and $9500.
According to analysts, BTC is moving to the surplus supply area that has been in establishment for a long time.
Analysts strongly believe that BTC is set to achieve highs of $14,000 soon. This will happen after bulls push the resistance level to be between $9700 and $10,500. When that level is rejected, the price of BTC will experience a dip before finally getting to break the resistance level. That means that sooner or later, the $14k level is achievable.
It is predicted that BTC is likely to get to that level Q3 of 2020.
The current price of Bitcoin, which is currently at $10k, is an indicator that Bitcoin has fully recovered from the dip it experienced in March that led the price drop to $3600. Traders strongly believe that it is market capitalization that is leading to the price uptrend.
So far, Bitcoin has reached $14k twice, which was in 2017 and 2019. That indicates that $14k is a very significant resistance level.
The halving event will also have a significant influence on the price of Bitcoin. According to history, the cost of BTC rose from 1200% to 6000% in just 11 months after halving. That is an indicator that Bitcoin’s price is set to rise after the halving event, though it will happen gradually.
Apart from the halving event, the other things that will sustain the momentum of BTC are the fundamental bullish factors, such as increased developer activity.
Currently, there is a surge in demand for Bitcoin by both individual and institutional investors in anticipation of the Bitcoin halving. There is a chance that institutional demand will rise further as the cryptocurrency has been perceived as a hedge against inflation.
Photo by Chris Liverani on Unsplash
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