This Is Why Bitcoin Will Reach New Highs This Month

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This Is Why Bitcoin Will Reach New Highs This Month

Bitcoin Will Hit $13,000 Very Soon

Bitcoin is having a solid rally this year, there is no doubt about that. The combination of technical conditions, growing acceptance globally, and an upcoming halving are supporting the world’s leading cryptocurrency. Over the last few weeks the coin has topped the $8,000 level and entered a consolidation that bears all the hallmarks of a continuation pattern. I’m going to go out and say it. Simply based on the technical aspect it looks very likely Bitcoin will reach $13,000 and possibly as quickly as the next four weeks.

The weekly chart is what has me really excited. The chart shows a solid move up from lows set earlier this year. Over the past three months the momentum within the market has accelerated, creating a series of long green candles. To put the candles in perspective, they are the largest candles since early in 2020 and show a high degree of market engagement with price action. The last four weeks, especially now that this week’s candle is nearly formed, look like a nice little flag pattern within a rising up trend. If so, if confirmed, this pattern could easily lead to a quick $5,000 in price gains.

The risk of course is that resistance at the current high will keep prices from moving higher. This resistance is near $9,000 and may be quite strong. The mitigating factor is the indicators. The indicators are consistent with a consolidation within uptrend but still very bullish. MACD in particular is showing an extreme peak coincident with the latest high in prices. This is a sign of market strength that will result in a retest of the high and probably a new high to boot. Once resistance is broken, however, I think there will be another inflow of cash to the market and that will drive price up to the $13,000 level.

The daily chart is equally bullish. This chart shows an asset recovering from a price correction within an uptrend. Current price action is moving higher, in line with a shift in momentum, that is likely to result in a test of resistance if not a move to new highs. Stochastic has already fired a bullish entry signal so upward momentum is expected. MACD has not yet confirmed the move but, if it does, and it coincides with a breakout, a substantial move higher is likely to follow.

The reason is simple. Bitcoin, at the core of the issue, is a technical asset. It’s value is based on what the market thinks it’s worth and right now that worth is on the rise. The charts look very good so this will attract new and more money to the market and that in turn will fulfil the self-fulfilling prophecy of technical analysis.

From $900 to $20,000: Bitcoin’s Historic 2020 Price Run Revisited

Stan Higgins

From $900 to $20,000: Bitcoin’s Historic 2020 Price Run Revisited

The chart above says it all.

One year ago as of the time of writing, the price of bitcoin traded between $930 and $978 – movements that perhaps set the stage for the cryptocurrency’s value to cross the $1,000 on New Year’s Day. Indeed, that headline-making development would be the first of many to come for 2020.

In this article, we look at some of the major moments for bitcoin’s price during the last 12 months, a period of time that saw the price of bitcoin climb from below $1,000 to nearly $20,000 on the CoinDesk Bitcoin Price Index (BPI).

It was a year that arguably exceeded last year’s bullish predictions and one that saw unprecedented interest coming from places – particularly in the finance industry – that some may not have imagined possible just 12 months ago.

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The PBOC impact

While January started off with bitcoin price fireworks, that month would also see one of the defining regulatory moments of 2020: an initial move by the People’s Bank of China, the country’s central bank, to tighten its oversight of the country’s then-dominant bitcoin exchanges.

Yet, the warnings from Chinese officials didn’t cause the market death blow that some observers feared.

However, it did lead to a drop in trading volume as a result of the imposition of new trading fees by what were then the “Big Three” exchanges – Huobi, OKCoin and BTCC. Those exchanges later halted withdrawals following new edicts from the PBoC, ultimately closing fiat trading this fall following further restrictions from Chinese regulators.

The ‘no’ heard round the world

Investors Cameron and Tyler Winklevoss first filed to launch a bitcoin exchange-traded fund back in 2020, setting the stage for a multi-year journey that led to the March 2020 rejection by the U.S. Securities and Exchange Commission (SEC).

And while the SEC has since moved to review that decision – a process that is still pending – markets at the time reacted poorly, perhaps because some were betting that the U.S. regulator would approve rather than shoot down the proposed ETF.

On the news, the market dropped by nearly 30% that day, ultimately recovering above the $1,000 level after the initial drop.

But in what was perhaps a harbinger of the months to come, bitcoin’s price was back above its pre-ETF point within days of the ruling. And despite the reluctance expressed by the SEC at the time, a number of firms have filed to create bitcoin ETFs, with a particular focus on funds tied to cryptocurrency futures.

The summer of bulls

If there was one phrase to define the period between May and September of this year, it was this: a new all-time high for bitcoin.

The cryptocurrency’s price pushed past each successive milestone with apparent ease, including one on May 1 that saw bitcoin break past a record set on an infamous and now-defunct exchange.

This summer also saw significant activity around initial coin offerings, as shown by data in CoinDesk’s ICO Tracker, leading one observer to dub it “the summer of crypto love.”

As May drew to a close, the price of bitcoin climbed above $2,000 for the first time and surpassed $3,000 just weeks later. At the same time, those price milestones were often accompanied by subsequent turbulence, including a drop of $300 within one hour just a day after the $3,000 line was first crossed.

Perhaps one of the most noteworthy developments was the entry of major Wall Street analysts to the bitcoin price-watching game. Goldman Sach’s Sheba Jafari notably predicted the move past $4,000, leading to further forecasts from both Goldman Sachs and other analysts as the weeks and months progressed.

By the first week of September, the price of bitcoin exceeded $5,000 for the first time – only to drop by hundreds of dollars two days later. Indeed, the coming days would see a reversal of the late summer’s gains, with the cryptocurrency’s price falling below $3,400 on Sep. 14 and down past $3,000 the following day.

Past $10,000 and beyond

By mid-October, the September malaise had been forgotten and the price of bitcoin was once again above $5,000.

Despite the pending closure of China’s “Big Three” exchanges and a global crackdown on unregulated ICOs beginning to take shape, the price of bitcoin was largely buoyed by a bullish sentiment which would set the stage for some of the eye-popping moves in store for November and December.

Yet for all the regulatory rumblings and forks away from the bitcoin network, the cryptocurrency’s price largely continued its upward trajectory, culminating with the CoinDesk Bitcoin Price Index’s all-time high of $19,783.21 on Dec. 17.

But in a refrain of the moves seen after many of the all-time highs this year, that close encounter with $20,000 was followed just days later by a 30% drop that shaved billions of dollars off of the total cryptocurrency market capitalization. It was one of the biggest market corrections seen to date, sending bitcoin’s price tumbling below $11,000.

Over the coming days, the price of bitcoin would recover, climbing back beyond $16,000 and higher on other cryptocurrency exchanges worldwide. Yet as shown in the most recent graphs and price data, bitcoin’s value has begun falling, dropping to the mid-$13k’s on Dec. 28 after opening the day above $15,000.

Indeed, the moves of the past few months raise the same old question: where does bitcoin’s price go from here? If 2020 is any indication, all bets are truly off.

Read more about.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

3 Reasons Why Bitcoin is in the Red Today

Bitcoin is trading below USD $10,000 for the fifth consecutive day. Causes for this price correction can be tied to a series of predictable factors, none of which present a long-term threat to the overall crypto market.

BITCOIN INVESTORS ARE TAKING PROFITS

When commodities experience rapid spikes in value, some investors will always sell to secure their profits. Thus, retracements are a common and expected component of any appreciating asset.

The move above $10k represented a significant psychological milestone for Bitcoin, which prompted a notable correction on February 20th. Since then, however, the price has remained relatively stable, and even moved close to the 10k mark more than once. Whereas there is no clear indication that the 10k mark will be broken again over the next few days, there are also no signs that the price will fall much further.

CORONAVIRUS FEARS ARE SLOWING MARKETS

Over the past two days stock and commodities markets around the world have tumbled. Analysts point to uncertainty over the coronavirus as the chief cause. The crypto markets appear to be no exception. Predictably, the price of gold has spiked.

Of note is the fact that the Bitcoin hash rate has flatlined. In fact, it has declined slightly since the beginning of the month. As most mining now takes place in China, it is clear that mining farms have quit adding to their inventory. This fact is not surprising given the chaos the virus is causing across China’s economic and industrial sectors. Until this problem is resolved, Bitcoin prices will likely remain subdued.

PRICE FOLLOWING A PREDICTABLE TREND

Although highly volatile, the crypto market is beginning to demonstrate patterns as it matures. The current Bitcoin correction fits similar movements that have taken place since 2020. Each year the price begins to slide in late February, with a recovery toward the end of March.

It is thus not surprising that the price has declined, yet a recovery could come at any moment. The block reward halving is a new factor that has not taken place in five years. Analysts have long expected the price to move up as a result. This fact adds to the belief that the current dip in value is, in fact temporary.

Regardless of the present market condition, the overall outlook for cryptocurrency is tied to adoption of blockchain technology, which continues to accelerate. Thus, is strong reason to be optimistic for long-term growth.

Why do you think Bitcoin is in the red again today? Add your thoughts below!

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