Cryptocurrency

3 factors why the rise of Bitcoin soon-to-over $10,000

In the past month, Bitcoin has literally exploded. In fact, the crypto-currency has risen since the low of 6,400 to the Dollar in December last year by about 40 percent.
While many analysts suspect that this fast-paced rally is a macro-economic reversal, the BTC will once again bring in a strong upward phase, some not so sure. In fact, some commentators have suggested that the current course of action of the crypto-market is reminiscent of scary at the of July 2018, as Bitcoin, a false breakout to the downside saw and months later, 50 percent of crash.
But according to a Tweet from a prominent crypto-Trader, there are three reasons why he thinks Bitcoin, in spite of the above-mentioned fractal on the macro-level is totally optimistic.

3 reasons why Bitcoin is on the macro-level, bullish and soon parabolic could be

Trader Satoshi Wolf recently stated that according to his analysis of the One-month chart of Bitcoin over the last three years at least three bullish technical analyses and fundamental signs are:
Firstly, the recent price decline, the Bitcoin from $ 14,000 to a low of 6,400 $ has experienced is characterized by a decreasing volume, which he referred to as “bullish”. In fact, a decline in the volume in a downward trend would indicate that sellers are losing control.
Secondly, bounced BTC in December at high buying volumes-economic support level decided by the major macro-6,400$, since the beginning of 2018 is of the utmost importance.
Thirdly, the Halving is still there. The halving of the block reward, which will lower the inflation rate of crypto-currency by half, is in the immediate vicinity (may 2020). It turns out that this event is correlated with the upturn of the market.

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This combination of factors suggests that Bitcoin could in the coming months, over 10,000 dollars and maybe even beyond to explode.

JP Morgan, unfortunately, is bearish on Bitcoin

Bloomberg published on 10. January, an article, a research note from strategists at JP Morgan have been outlined. In the note, the Managing Director of JP Morgan’s Nikolaos Panigirtzoglou noted, that the crypto-currency poses a certain risk to the bottom.
Panigirtzoglou considered the fact that the intrinsic value of Bitcoin, which was calculated by the Wall Street giant due to the consideration of the marginal costs for the production of a single Coin by the price for computing power (on ASICs) and electricity costs weighed, shows that the fair price of BTC is still about $ 5,000:

“The market price has fallen since its peak of nearly 40%, while the intrinsic value has risen by about 10%… The gap has not yet closed completely, suggesting that some remains downside risk.”

It is unclear how these potentially decreasing negative Mining dynamics with the upcoming half-hanging instrumentation, in particular the potentially bullish impact on Bitcoin. Interesting is the fact that the Hash power is increasing steadily, although a Miner may receive only the half of Bitcoin is. The Miner is already expecting a rise in Bitcoin price?

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.