Bitcoin made an impressive run last week that saw it climb to reach over $10K. The move was inspired by an announcement by China president who urged his government to embrace blockchain technology.
The announcement triggered Bitcoin to surge by more than 40% in less than 24 hours. A correction pulled back prices below $9,500 and has since found it difficult to break above this. While this continues to be the primary target, it is more likely Bitcoin sees a further pullback before breaking above. The next two key resistances for Bitcoin are $9,500 and $10,000.
One reason that will see Bitcoin drop from current levels is investors selling now in fear that Bitcoin has topped in the short term. Peter Schiff has floated this idea recently as we reported. According to the gold bug, whales are currently selling before the next crash.
Some investors will see Bitcoin stalling at the $9K position and losing faith in a move above $10K, subsequently taking out short gains. This will certainly drive supply up and see demand drop. The $9K support is not strong but the bulls will definitely show strength at the $8.5K support.
While a pullback is in order, Bitcoin is destined for a bullish trend in the month to come. As one Bitcoin enthusiast tweeted out a few days ago, there are more reasons to ‘HODL’. Twitter user Dani Hedl explained:
Bitcoin is perfectly positioned for a super cycle:
– Central Banks are printing more than ever
– Global debt as a % of GDP is the highest its been in recorded history (peacetime)
– Structural risks in the financial system haven’t been resolved
Furthermore, fundamentals are currently signaling more winnings for Bitcoin. Daily trading volume has recently skyrocketed and at the time of writing this, has climbed to over $25 billion. Bitcoin market dominance has also soared and is close to getting back to 70%.
This is not to forget the heavily awaited 2020 Bitcoin halving which watchers expect to boost Bitcoin to new all-time highs.