Bitcoin Breaks Past $7,000 amid COVID-19 outbreak
As the world is struggling to fight against the spread of COVID-19, there are some positives for those of us monitoring the crypto market. According to Forbes, Bitcoin’s value reached a 3-week high as it went past $7,000 to about $7,300. In addition, Cointelegraph noted that Ethereum’s price also rose to $165, while XRP is gradually pushing the $0.20 mark. As a whole, the crypto market is still 30% below the highs it reached during early 2020.
Where does Bitcoin go from here? Not much stop loss selling portrays optimism for more gains according to head of research for London-based digital asset firm Bequant, Denis Vinokourov. Invest Diva’s CEO Kiana Danial also believes that price would rise based on technical factors such as solid bullish engulfing candles and testing a key resistance level being the lower band of the daily Ichimoku cloud.
An article by Bloomberg believes that a rally towards $8,000 is possible if the price can remain above $7,000 as it previously served as a support line between November and January. Craig Erlam, senior market analyst at Oanda, deems a rally towards $10,000 isn’t far off if Bitcoin can surpass the $7,500 level, which would also bring it above the Moving Average – 50 line.
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Miners, who play a pivotal role in influencing the price and volatility of the market, would also cause the price to go up. Joe Nemelka, a data analyst at blockchain analytics provider CryptoQuant, mentioned that the rise in price could be related to only having profitable miners in the network. This is because unprofitable miners have higher selling pressure which brings the price down as rumoured for last month’s 50% drop.
In addition to the profitable miners, the anticipated next month’s to 6.25 BTC per block halving would instantly double production cost. This would result in the price rising quickly to what is known as ‘miners bottom’, the absolute floor price for Bitcoin as miners would not sell if the price drops below it.
The current price rally and the assumption of many gives Bitcoin investors something to look forward to. If you haven’t traded started trading cryptocurrency, start trading now on www.vhcex.com or use the copy trader function to follow the best traders from around the world.