The bitcoin price has surpassed the $10,000 mark, which analysts including BitFury vice chairman George Kikvadze described as a psychological threshold, as the entire cryptocurrency market recorded large gains.
In yesterday’s report, CCN.com noted that bitcoin is in an ideal position to break through the $10,000 mark, given its strong volume across all major cryptocurrency exchanges. Although the price of bitcoin has dipped below $9,900 since achieving $10,000, unless sell volumes continue to rise in the upcoming hours, it is unlikely that the price of bitcoin will stay below the $10,000 mark in the short-term.
Throughout the past 12 hours, the daily trading volume of bitcoin and other major cryptocurrencies remained relatively low, in comparison to the market’s volume on February 15. Bitcoin also demonstrated a massive sell volume earlier today, the biggest one yet since February 14. If bitcoin cam remain above the $9,700 mark, the starting point of February 14, it will likely soon rebound to $10,000 and potentially lead a strong rally.
Tom Lee, a Wall Street strategist at Fundstrat known for his mid and long-term bitcoin analysis, has stated that bitcoin will likely achieve new all-time highs by July of this year. Based on the v-shaped bottom of bitcoin, Lee noted that bitcoin will begin to show resilience and start to build some momentum throughout the mid-term.
“This recent 70% decline is severe. We can see a case for Bitcoin’s resilience here given the sharpness of the recent decline,” said Lee, predicting bitcoin to achieve a new all-time high by July.
Even at $10,000, bitcoin remains at below 53 percent from its all-time high established at $19,000. While most assets tend to struggle to recover in the short-term after 70 percent corrections, bitcoin has started to show early signs of mid-term recovery, as explained by Lee.
As a volatile currency, bitcoin declines by large margins but also increases rapidly in short periods of time. Hence, as bitcoin stabilizes above the $10,000 mark, as it did in throughout November and December, it is entirely possible that it will experience an exponential increase in value from $10,000 back to its all-time high at $19,000 in the upcoming months.
After recording a massive increase in value with a 30 percent surge, the price of Litecoin has declined slightly, by 8 percent. Ethereum has also struggled to demonstrate gains it recorded on February 15, as the price of Ether decreased by 2 percent.
Still, Bitcoin Cash has seen an 8 percent increase within the past 24 hours, after surging by 30 percent last week. Bitcoin Cash has been the best performing major cryptocurrency, outside of 0x, which has enjoyed price spike due to the listing of Bittrex and South Korea’s second largest cryptocurrency exchange UpBit.
Overall, the market still remains optimistic, as bitcoin remains above $9,900 and other cryptocurrencies have not recorded large losses after a strong performance over the past two days. Premiums in the South Korean market have also reemerged, as the demand for cryptocurrencies from local investors have started to increase after a month-long bear market.
Featured image from Shutterstock.
Last modified: May 20, 2020 9:05 PM UTC