It has been weeks of great enthusiasm in the crypto world, as the price of Bitcoin rose unstoppable, overcoming the 10,000 dollar barrier once again. However, the emotion could have been premature, as the fall in the price of BTC below 10,000 indicates. But what could happen if Bitcoin does not recover its price? We comment on this article.
The race to 10,000
The rise of Bitcoin during these first weeks of the year seemed unstoppable. By leaps and bounds, the world’s first cryptocurrency cut the road, getting closer and closer to $ 10,000 per BTC. Until, finally a few days ago he managed to overcome this psychological barrier.
This growth in the price of Bitcoin was driven by three factors that, although independent, complement each other. Starting of course with the nearness of the future halving of the BTC Blockchain. Which is expected to occur in May this year, increasing the shortage of Bitcoins in the market, and therefore its price.
The second factor is the speculation of currency traders. Which, began to sue BTC not to be left out of the profits generated by the rally. However, like most purely speculative impulses, this increase in demand is not sustainable over time.
What makes the third factor that drives Bitcoin even more important. We refer to the humanitarian tragedy in full development in Chinese territory: the coronavirus. And, the economic and social uncertainty generated by the expansion of this disease, has repercussions in the market. Which leads the capitals to try to take refuge in valuable reserve assets, in case the disease causes a derailment of the global market.
Bitcoin can’t break 10,500
However, all these bullish pressures seem not to have been enough to get Bitcoin to overcome its first major challenge after $ 10,000. We refer to the resistance presented by the $ 10,500 per BTC, which, being unable to break, has led to the price of BTC sinking below 10,000
All this leads us to wonder, if the price of Bitcoin can return to 10,000 dollars, and what will happen if it fails to do so. Especially considering the enormous dependence that altcoins have on BTC. Those that could be the main ones affected by a definitive fall of Bitcoin.
However, if what happened in recent weeks can serve as a guide on what will happen in the price of the cryptocurrency. We must remember that just a few days ago, on February 11, the crypto market suffered a fall of $ 300 that brought BTC down briefly from $ 10,000. Recovering soon after, something that we have also seen on this occasion, because Bitcoin is already trading at $ 9,931, very close to 10,000.
But what if it didn’t happen? What could happen in the crypto market if Bitcoin fell back to levels below $ 10,000? The truth is that, in this case, there is no need to worry, because the halving in the cryptocurrency Blockchain is quite close.
Thus, if the worst case scenario occurs and Bitcoin falls below its next resistance point at $ 9,500. We can count on that soon there will be a boost to its price that will return it to more favorable levels for the crypto world. What makes this our Today’s Data here on CriptoTendencia.
International Studies student, interested in economics and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and cryptocurrencies in particular.