Since early September, the price of Bitcoin has gradually increased from $6,100 to $6,550, testing the $6,800 resistance level on two occasions.
Bitcoin experienced four dips in its price in the past 30 days and every consecutive drop in the price of the asset stabilized in a higher region than its previous decline in value.
On Sept. 9, the price of Bitcoin dropped to around $6,100 during its first fall in the month. On Sept. 16, a week after the initial drop followed by a corrective rally, the price of Bitcoin dropped to $6,250, at a higher point than its previous drop at $6,100.
On Sept. 26, around 10 days after the second dip, the price of BTC dropped to $6,400, $150 higher than the region BTC fell to on Sept. 16. On Oct. 4, it’s latest minor drop in price, Bitcoin dropped to the higher region of $6,400.
Given that Bitcoin has seen the $6,000 support level strengthen and the momentum of the asset at the $6,550 mark intensify, it is entirely likely that the asset will continue to engage in a gradual recovery throughout October.
A rapid increase in price from $6,000 to a higher region like $7,000 and $8,000 in the short-term, similar to its movement from $6,800 to $8,000 earlier this year, is not likely due to the decline in its volume.
On October 6, CCN reported that the volume of Bitcoin fell from $4 billion to $3.2 billion on Coinmarketcap and from $2.6 billion to $2 billion on ShapeShift’s CoinCap.io, suggesting that an exponential increase in price of Bitcoin is not in play in the short-term.
If Bitcoin continues to sustain its momentum it has demonstrated throughout September, it is possible that it can break out of the $6,800 resistance level and potentially eye an entrance into the $7,000 mark.
But, in consideration of the positive regulation-related developments in Japan, South Korea and the US, many analysts expected BTC to surpass major resistance levels at $8,000 and $9,000.
Masayuki Tashiro, a prominent Japanese market analyst, said in August:
“Personally I am bullish, and by the time the outline of the regulations will come together in October, those investors who will feel safer will come back. I hope things won’t get as overheated as last year, but I believe BTC can win back the value of 1 million yen (9,020$) in range.”
Bitcoin and the rest of the crypto market has dropped 69 to 80 percent of the valuation in the past nine months, recording some of the steepest falls in value in recent years.
A short-term bubble is often followed with a gradual recovery in value, volume, and market demand. Although the market has started to demonstrate sellar fatigue and clear signs of a bottom in the low range of $200 billion, a gradual recovery could be more beneficial for BTC in the long run.
Featured Image from Shutterstock
Last modified: May 20, 2020 5:10 PM