Bitcoin has seen generally weak moves throughout the past few days and weeks, as it is still struggling to gain any decisive momentum to break through the $10,000 psychological support level aggressively. 9500 - 9750 dollars, at the same time we note a fairly significant growth in trading volumes by 37%, reaching 26 billion dollars.
The leading cryptocurrency is currently in a critical stage, as it continues its upward trend since its decline on “Black Thursday”, and therefore the coming period is of great importance in determining Bitcoin prices. XM Arabia In the short term, if it continues to the upside, it may record a new annual high at over $12,000 in the next two months, but if it fails to find support above $10,000, it will likely rebound to $7,400.
Analysts say that bitcoin and gold are the best performers in 2020, there are many catalysts working in favor of bitcoin that could push the digital asset to an all-time high in the near future.
Further deterioration in economic conditions may boost the positive performance of Bitcoin, especially with high levels of unemployment, demand and supply shocks, and social unrest in large parts of the world.
Bitcoin and the reasons for the rise in price
1. Bitcoin is currently on an uptrend very similar to the price action of 2016, when the network underwent a second halving event in which the Bitcoin equivalent halved from 25 BTC to 12.5 BTC, so four years later Bitcoin is close to setting this $20,000 record year if it follows the 2016 trend.
2. Bitcoin is maturing faster than expected due to its rapid recovery from its slump coinciding with the massive stock market crash and the crash in crude oil prices, at the same time Bitcoin acts as a mainstay for the remaining $100 billion in the cryptocurrency market.
Bitcoin derivatives have experienced massive growth in the past year as well, as the emerging futures market has driven Bitcoin into noteworthy positive moves, and the growth of derivatives also indicates the interest of institutional speculators and investors in using futures and options to hedge their immediate market exposure.
3. The chain of events brought about by the Corona virus is shaping a future in which Bitcoin flourishes, we are currently noticing that people are resisting state authority and this was reflected in the massive protests in Hong Kong and the United States successively around the world.
On the economic side, the fallout from the Corona virus has confused the Fed as it is now trying to find its way out of the chaos, no one can print more bitcoin. Bitcoin lays the foundation for the rally.
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