Bitcoin price has been consolidating for over a week now, holding on to gains above $9k while the world’s stock markets get the jitters in the wake of the Coronavirus outbreak. Five figure BTC could be just around the corner and here is are 6 reasons to consider.
The price of Bitcoin (BTC) has remained range-bound for another day extending the consolidation period to a week. Since January 28, the flagship cryptocurrency has fluctuated between $9,200 and $9,600 levels. At the time of writing it was trading at the lower end of this range, just below $9,300, and has been relatively stable for a week.
Below are 6 plausible reasons why Bitcoin price surge past $10k is imminent.
The longer the asset stays at this level the more bullish it becomes, increasing the probability of further upwards momentum on the path of least resistance.
So far this year Bitcoin has gained 30% and we are only five weeks into it. A number of factors appear to be driving these gains at the moment and they could continue into another price rally equaling or even surpassing that of 2019.
“Monthly taking support on 21 Monthly EMA, and closing above 10 Monthly EMA. Also getting a Monthly Higher High close,”
The second reason why traders can expect the price of the leading cryptocurrency to rally is that it has moved back above the 21-week Exponential Moving Average (EMA). Historically, this is a good indicator of a bull market.
A third signal, according to this analyst, is bitcoin’s weekly RSI is moving back above 55 which can be seen as a bullish indicator. Bitcoin price is also back above the 200-day Moving Average (MA). This adds further technical confirmation to market sentiment.
The golden cross on the daily chart is another very positive signal for a long term trend reversal. This occurred two days ago when the 50-day moving average crossed above the 200-day. The last time this occurred was in April of 2019 when BTC was priced at around $4,500. Following a golden cross signal, prices surged to a yearly high of $13,800 in June.
Wow. Bitcoin is about to print a Weekly Golden Cross next week, after 10 months.
If Bitcoin were to do the same $4000 to $14000 rally this time its going straight to $30000.
I'm so hyped for this! pic.twitter.com/UIS0wpQIyb
— Anondran (@AnondranCrypto) February 3, 2020
A similar pump from today’s Bitcoin prices could send BTC soaring to $28,000 after the halving.
At the moment, most analysts have mixed opinions over the extent to which the coronavirus is impacting Bitcoin price. According to trading personality Tone Vays, any severe escalation of the coronavirus may result in an adverse effect, although for now, it is helping the flagship token.
The managing partner at blockchain investment firm Kenetic Capital, Jehan Chu, said on February 3:
“As trust in global institutions and markets continues to deteriorate, we will see highly mobile digital assets like Bitcoin explode in value.”
Bitcoin halving is perhaps the biggest influence on BTC prices in 2020. Some experts believe that this halving event that is around 98 days away would push it significantly higher. If the last two halving 2012 and 2016 are to be repeated then this year will be even bigger.
Here’s how #Bitcoin halvings have impacted the market. So, does the Bitcoin halving help drive prices higher? Absolutely. The only question now is how high will #BTC go this time around? pic.twitter.com/YnSp4Y8igO
— Weiss Crypto Ratings (@WeissCrypto) February 1, 2020
Notably, Tom Lee and other proponents are convinced that the price of Bitcoin will rise to $27,000 around six months from now. However, there is another group of analysts who think that the price will not surge as high because miners might drag it down.
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