It has been a turbulent year for Bitcoin, as well as other cryptocurrencies. The last twelve months saw BTC’s high go past $12,000 in July 2019 which got people excited about another rally that might rival the previous all-time record. However, the exact opposite happened in the months that followed. Bitcoin had to crash down around $6,500 before Christmas, dashing the hopes of a recovery before the end of the year. Everything looked bleak then with people afraid to touch anything. However, 2020 would add new twists and turns to the story. The tremendous volatility should be good for experienced traders who know how to take advantage of opportunities.
Pandemic Effects
Bitcoin briefly went past the $10,000 level in mid-February in a big rally that started in January. However, it could not sustain the streak and the price went down again after that. Just like other assets, it suffered a heavy loss in March when it spiraled down to levels it hasn’t gone down to in a while. It even breached the $5,000 level which was a major turning point. This set up the stage for a V-shape bounce although the right side of that chart is not as steep as the left. As equity markets recovered, the BTC rallied along thanks to improved confidence from traders.
Stubborn Barrier
In fact, latest Bitcoin news got very close to its 2020 peak early in May. This time it was not able to cross the 10K threshold. A few close calls and no cigar. Some analysts were even predicting a breach of the 11K level but so far this has not transpired. The market simply moved sideways, seemingly waiting for a definitive sign before making a decisive move in either direction. Given all of the recent movements, this seems to be the great psychological barrier that needs to be overcome. There is too much pressure to sell whenever the coin moves to this ceiling. There is not enough buyers coming in as well.
Future Prospects
As for the latest Bitcoin news, the indicators show a good future ahead for BTC. The bulls are holding the price above the $9,000 resistance level and this trend might hold for a while longer. The problem is that the support level seems to go lower by $100 week-on-week. Unless the chart breaks the barrier, the price could fall significantly with some predicting the $6,000 mark by the end of the year. This is not hard to imagine given market volatility during the pandemic.
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