Bitcoin saw a rise above the resistance level of $11,000 during yesterday’s trading, but the correction and profit taking took control of it to turn back to the downside and settle above $10,800 for the time being, and prices are likely to remain supported near this level, so forecasts indicate Experts expect the currency to resume its upward movement in the near term.
However, after Bitcoin breached $10,500 which acted as a strong resistance investor sentiment is mixed, some traders believe the coin will face rejection at $11,000, some expect a continued rally beyond $11,000 due to bullish technical indicators.
During last week's trading, Bitcoin traded in a narrow range, which followed its decline by 19% since the beginning of September.
However, the cryptocurrency market was able to recover from the final blow it received over the past week, as the massive sell-off that caused bitcoin to lose about $2,000 of its value to briefly below the $10,000 level and to rebound back above the $10,000 price halted its bullish momentum.
Since the end of May, the bitcoin dominance index has fallen by about 12% but the total value of the crypto market has increased by $78 billion during the same period, and although bitcoin has fallen from $12,000 to $10,000, the number of holders has increased by 2%, so it is believed that these investors came to the market with long-term goals.
Bitcoin showing some notable signs of strength following the bout of weakness seen in the past two weeks reflects that investors continue to view it as the most reliable and safe digital asset during times of emerging market uncertainty.
Despite this, investors still fear a further decline in the cryptocurrency market, as crypto experts believe that Bitcoin could drop below $9,000, especially with the positive news of a vaccine for the Corona virus.
Throughout most of 2020, bitcoin and altcoins have been rallying together, but during yesterday's trading the leading cryptocurrency outperformed the alternatives, but although bitcoin is currently looking to the upside as it surged more than $1,000 from its lows at under $10,000.
The latest data showed that the volume of crypto derivatives increased by 54% in August to more than $700 billion marking a historic high, and Africa is showing significant growth in demand for cryptocurrencies expected.
Over the next few years we will witness how emerging economies will become drivers of development CryptocurrenciesSince regulators in these countries are often far from as fast and experienced as in developed countries, and with a large number of young investors becoming more tech savvy we can expect crypto drive to evolve from these regions of the world.