Can Bitcoin Break the $10,000 Psychological Support Level?

Bitcoin saw a positive start adding today’s gain of 3% to trade above the $9,700 level, the most important struggle for the world’s largest cryptocurrency is being seen to cross the $10,000 level, which may open the door for the coin to grow around $12,000 to $13,000.

Bitcoin Expanded XM Arabia In its growth over the past seven days by 13%, the total cryptocurrency market cap increased over the week by 13% to reach $268 billion, and surpassing the $300 billion level is an important step for the crypto market as above this level coins will face strong selling pressure.

Bitcoin

Bitcoin

Bitcoin is back to its pre-coronavirus levels, it is currently trading above $9,700, and it crossed the $10,000 psychological support level for the first time on February 15, and the coin has grown since the beginning of the year by about 36% making it one of the best assets by the performance.

Bitcoin has a chance to grow

It's been almost a week since the halving event, and current price dynamics show that the world's first cryptocurrency has been backed by complete confidence due to the miner's reward halving, miners are currently receiving 6.25 BTC per block created instead of 12.50 BTC previously, and this will end in a shortage More currency is in supply which could push prices higher.

But some skeptics argue that the currency has peaked, they also say that the market has matured and behaves differently, and given the current level of maturity, the fear of losing leads investors to open long positions even though oscillators are indicating overbought levels.

While most crypto experts agree that there is plenty of room for Bitcoin to grow, that doesn't mean that its price is heading towards all-time highs in the near future as Bitcoin's scarcity will not be felt immediately.

On the other hand, the crypto-related derivatives market is more important today compared to the two previous halving events. Bitcoin derivatives such as futures and options encourage more advanced price discovery and enable investors to sell short more easily, so it is not just about supply and demand factors, there is more speculation going on. The price of bitcoin can go in any direction in the short term, the only way to take advantage of rising bitcoin prices in scarcity is to buy and hold bitcoin.

Bitcoin and its correlation with traditional assets

Over the past two months, Bitcoin has been moving steadily with the S&P 500, which shocked investors and analysts and made the Federal Reserve warn of Bitcoin rising at the expense of stocks in light of the mounting fears in the markets.

But fears that have branched out into stock markets have not made their way into Bitcoin as the digital asset's sentiment has soared recently.

The inconsistency of the correlation is a good sign for crypto, where stocks are in a state of sharp turmoil but Bitcoin keeps its bull market, which proves that the correlation was false.

Mohamed Abdel Khaleq
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