It seems that the hope of ‘Santa Rally’ will help Bitcoin price end the year at $ 10,000 not as successful as we expected. In the coming days of 2019, let’s take a look back at Bitcoin’s price history and envision a bright picture for this cryptocurrency in 2020.
$ 10,000 is not a difficult challenge for Bitcoin
According to Bloomberg, the Bitcoin price will soon reach $ 10,000 and follow the same upward trend as gold. Perhaps research from Bloomberg focuses heavily on Bitcoin halving 2020 and the influence of Tether (USDT) on the market. Of course, they also emphasized the trend of applying Bitcoin in real life after witnessing a series of financial institutions and traditional services that have begun to “pay attention” to the cryptocurrency.
Moreover, only a few weeks are at the end of 2019. Therefore, if the Bitcoin price closes the year at% 6,500, support tilts favorably for 2020. In the past few months, the $ 10,000 milestone is extremely important for Bitcoin. Not just because this is a substantial support threshold but because it is the halfway point to Bitcoin’s all-time high of approximately $ 20,000.
The report from Bloomberg concludes:
“Part of its transition toward the crypto-market version of gold […] The maturation process should continue, notably as volatility declines. Like gold, Bitcoin is retracing a bear market, while most of its brethren (alt-coins) have increased betas on the downside […] For Bitcoin, we see $ 6,500 as good support and $ 10,000 as initial resistance in 2020.”
Correlation with gold and the importance of Tether
People often refer to Bitcoin as gold 2.0. Indeed, this market-leading cryptocurrency has a deep correlation with the gold market. Over the past decade, gold prices have risen by about 30%. They correlate the resurgence of gold back to the U.S. Federal Reserve rate hike of 2015. Coincidentally at that time, BTC’s price also surged when people were not financially sure.
On the other hand, Tether always plays an essential role in shaping BTC’s price. Every time more USDT is printed, BTC will undoubtedly fluctuate. Moreover, Tether also has the highest daily volume across the market due to its use as a currency.
The report highlights:
“This has negative ramifications for most crypto assets masquerading as currencies.”
Of course, we cannot predict the future of Bitcoin even in the next few hours. Therefore, the above reports are only for reference and contribute to making the market sentiment more positive. Moreover, we still have one thing to look forward to at the moment: Bitcoin halving in May 2020. Based on the historical price of previous halving times, we can fully expect the upcoming growth.
Bitcoin price today. Source: Coinmarketcap
Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Read more:
- ADA Price Plunged When Cardano’s Incentivized Testnet Shelley Failed
- Crypto Brief Dec.06: Bitcoin Maybe Will Reach A New ATH In August 2020 Plus Ethereum, Ripple, BlockFi, Litecoin, Tron, Binance, BitFlyer, Kraken, Bakkt News