Since the bitcoin price recorded $ 10,429 at the beginning of this month, its price has gradually decreased to its lowest level since the end of May at $ 8,900 at the end of last week, but it has since rebounded to trade near the price of $ 9,400, and over the course of the few days The cryptocurrency has been going up and down in a narrow range.
The popular cryptocurrency is carefully approaching the psychological support level of $10,000, this is the fourth time that Bitcoin has attempted to reach this resistance level, and the bulls are still hoping for continued growth in its price.
The decline in the price of Bitcoin is linked to the decline in the stock markets FP Markets Amid mounting fears of a second wave of the coronavirus, the S&P 500 lost more than 1%, and airlines and travel-related stocks saw the biggest declines.
What is the expected price of bitcoin in the coming period?
Although Bitcoin dropped to a three-week low at the end of last week's trading, the recent bounce reflects the potential for a short-term bullish trend, yet the bearish sentiment persists.
Some believe that Bitcoin will eventually compete with gold as a store of value, as many polls show that most investors prefer dealing with Bitcoin and cryptocurrencies, and as more confidence is built, these assets will become more popular.
Bitcoin has shown greater resilience this year than ever before, as the coin lost nearly 70% of its total value in the beginning and mid-March, when it fell from more than $10,000 to a high range of $3,000, yet within two months it returned. The coin reached the $9,000 range, and thus managed to recover most of what it lost and was able to cross the $10,000 level twice during that short period, which shows how strong it is.
Bitcoin balances down more than 12% on the exchanges
Bitcoin balances held on crypto exchanges have fallen by more than 12% since the beginning of this year, according to recent reports, reflecting bitcoin owners resorting to self-hedging as part of a strategy HODLing long term.
Meanwhile, cryptocurrency exchanges continue to see significant BTC inflows since Black Thursday (mid-March 2020), and BTC balances are reportedly down an astonishing 12.7% year-to-date.
While many people consider Bitcoin a wonderful innovation, others consider it a safe haven that can be used to hedge against devaluation of national currencies, which is why Bitcoin is often more expensive in crisis countries than in the rest of the world.
However, interest in Bitcoin is also increasing in developed countries and therefore it would be wrong to say that there is a direct relationship between the level of cryptocurrency adoption and the economic level of a country.