Cryptocurrency

Where goes the price of Bitcoin?

The price of Bitcoin is always one of the most important topics of debate within the crypto world. That’s understandable to see the great influence that has the first criptomoneda of the world on the other crypto assets. Which are normally blown away by the price variations that live BTC. Therefore, one of the papers most important online event to Decentralize was dictated by Nicolás Litvinoff, director of Estudinero, who explained where it is headed the price of Bitcoin.

The price of Bitcoin in the long term

To open his presentation, Litvinoff made clear some important points to understand the behavior of the market of Bitcoin. Starting by the difference in their trends in the short and long term. Since, as explained Litvinoff, although in the short-term behavior of BTC may seem “random”. In the long term, the virtual currency continues to trends a lot more clear and stable.

Nicolas Litvinoff explains where it is headed the price of Bitcoin

This situation is due to the size of the market of Bitcoin. And it is that, being a financial asset relatively new, and without the levels of mass adoption are just as important as the fiat money traditional. The movements of the main actors in the market influence in a big way in the short-term behaviour of the virtual currency.

Something that will not happen when the market of Bitcoin to reach its maturity, with a capitalization much higher, and more participants. That will prevent any movement made by a whale destabilise the market in the short term. Although in the long-term criptomoneda remain fairly stable, and therefore easier to predict where they are going, the price of BTC.

Where it is going BTC

Thus, when analyzing the graph of the market for Bitcoin in the long term from the year 2016, Nicholas shows that there is a clear upward trend. Which, although it has had weeks in which the price of the currency has broken the trend to the upside or to the downside. These breaks have not managed to accumulate the three weeks minimum for it to be considered that there is a breach of the uptrend.

In this way, and from the point of view of the financial analysis, after testing that on the price of Bitcoin were exercised during the collapse of the price of the arrival of the Coronavirus to the west. The currency has reached a very interesting point for over 11,000 dollars.

The trend of Bitcoin is clear to Litvinoff. Source: Binance

So, Litvinoff explains that the rise, Bitcoin is facing resistance at the $ 11,400 and the 12.775 dollars. And to achieve to overcome them could leave until the 13.800- $ 13,900 very quickly, although not believed to increase beyond there. This despite the fact that this trend is reminiscent of the behavior of the criptomoneda during the great bullish rally of 2017.

Meanwhile, the low, Litvinoff sees a double floor for Bitcoin, first technical and psychological $ 10,000, and then in the 8,500 dollars. For him, the BTC back at these levels would not be really a problem, but it may even be an opportunity to enter the market.

Being the floor really crucial to the 7.800 dollars, which if broken would make Bitcoin lose a lot of strength, and will put it at risk of losing the whole $ 6,000, which crack the bullish trend in the long term if it stays there for three weeks in a row.

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About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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