With the 100-day countdown to the expected Bitcoin halving; and with a month of January that left profits of more than 30%; Bitcoin price is heading towards the important psychological level of $ 10,000.
However, at the moment the price of Bitcoin is lateralized between $ 9,300 and $ 9,500. In this way, it is essential that the resistance at $ 9,500 be broken, as it will open the way to higher levels and target the $ 10,000.
On the contrary, the failure to exceed and maintain the $ 9,500 will probably deplete the market and leave the demoralized bulls.
If this is the case, a lower correction may be necessary until a new demand for BTC is found; consolidate a support level that launches again towards $ 9,500 and then at $ 10,000.
A key factor is the next Halving, which is estimated for May 12. This “event” programmed according to the Bitcoin protocol; will reduce the reward for each Block in half.
In this way, the issuance of coins will go from 1800 Bitcoins to only 900 new currencies for each day. Directly affecting the current offer.
The deflationary nature produced by halving; it allows that with the same levels of demand each unit is much more valuable. The more scarce the asset becomes, the more valuable it becomes.
Another key factor is the Bitcoin futures volumes (BTC); which they have been increasing during the last days, according to data provided by the research company Skew.
These instruments and platforms favor the entry of capital into the market; maintaining a merchant force to defend the key levels.
By reducing entry barriers, encryption exchanges play a vital role in attracting more investors. With improvements in security, storage and investment instruments; Institutional investors may find the investment process attractive for the new asset class.
However, institutional investment alone will not help boost the market. This is because their capacity allows them to participate stealthily in an OTC market without directly affecting the open market.
But this, in the medium and long term, causes the holding of the Bitcoins to remain in a few hands, reducing the amount of money and driving the price upwards and bringing the $ 10,000 barrier closer.
These and other factors influence the market. While the price of Bitcoin is becoming more stable for longer periods; You still need to increase investor confidence and security.
With the halving in sight and with a more educated and aware market of this event, the demand is likely to pretend to lead to the price of Bitcoin even above $ 10,000.
Cryptocurrencies are moving towards the mainstream as investment assets and it is not unreasonable to think that mass adoption will come sometime; and when that happens probably the next level to look for will be 6 figures.
Engineer, lover of the economy and technologies; Convinced that Blockchain will empower future generations, giving each individual freedom and sovereignty.