As Bitcoin hit the record high, some are warying of its bullish signal…Analysts suggests different speculations on the cryptocurrency in the medium and long-term
Bitcoin price had no change, trading at the level of USD 11K during the last 24 hours, when the cryptocurrency price recorded USD 11,420, the highest record in 2020, in Bitstamp, a crypto exchange in Luxembourg.
A data provided by Skew, a digital currency analysis platform, shows that Bitcoin's trade volume in the futures market is over USD 40 billion on 28th(Local Time). This is the highest record since the Black Thursday(March 12nd), when BTC price dramatically fell.
Many experts anticipate that bitcoin bulls would rise price between USD 11,600 and USD 12,000, after breaking above the resistance line at USD 11K. Some, however, warn that BTC price is likely to be slid in short term or showing flattened movement, due to the strong resistance between USD 11,500 and USD 12,000.
"When BTC/USD pair breaks above the hurdle between USD 11,400 and USD 11,500, BTC would rally, and maybe its price would record USD 12K. Meanwhile, if the digital currency price is corrected lower, the USD 10,800 level and USD 10,500 level can be broken. Then, BTC risks being fallen to the USD 10,300 or USD 9,800," reported NewsBTC.
"Mr. Chief, a renowned crypto analyst has aruged that until the Great Recession after dotcom bubble, the highest record of Amazon's stock chart in 2017 was similar with that of Bitcoin. Now, we found that the fractal is accurate. Based on this fractal, BTC is likely to surge by USD 20K by the end of this year," it added.
"Like Ethereum(ETH), Bitcoin broke above the resistance line last year. BTC would reach USD 20K, as it did in 2018," said Eric Conner, the founder of EthHub. Mike McGlone, a senior analyst of Bloomber, has also predicted that BTC is likely to increase by USD 20K.
Josh Rager, a crypto tech analyst, tweeted that BTC would rally, hitting the record high, highlighting that the digital currency broke above the long-ternm resistance line. "Predicting the price of bitcoin on an exact timeline is a fool’s errand. But, BTC is very optimistic in the medium to long-term, as we believe bitcoin will again be one of the best performing asset classes in the coming months and years," explained Peter Wall, the CEO of UK-listed crypto miner Argo Blockchain.
"Bitcoin would reach USD 120K for next few years. For next 30 months, bitcoin would enter bull market, breaking above the USD 19,500 level until 2021," suggested Alistair Milne, the Chief Investment Officer of Altana Digital Currency Fund, citing a Bitcoin chart linked to City Bank.
Option traders, however, see that Bitcoin is unlikely to record the highest price until the end of this year. A data provided Skew suggests that the probability of BTC can reach USD 20K until December, 2020 is just 9%.
"Bitcoin would maintain high volatility with a year end of around USD 7,000," explained Gavin Smith, the chief executive of bitcoin and crypto consortium Panxora. "BTC/USD pair may be corrected to less than USD 10K due to the gap of futures chart from Chicago Mercantile Exchange. Historically, traders would go back to fill disappeared candles. Now, the gap is between USD ,952 and USD 9,665," said NewsBTC.
Elvira Sojli, University of New South Wales associate professor of finance, predicted taht BTC price will be under USD 10K by the end of this year, with the second or third wave of Covid-19. Changpeng Zhao, the Chief Executive Officer of Binance, said bitcoin is still tied to the stock market and a future crash could send the bitcoin price lower. He also emphasized that traders should not take the description of bitcoin as a safe haven asset.
Meanwhile, US stock declined even with the decreased anxiety over the spread of Covid-19 in the US, particularly in some hotspots, including Florida and Texas. The frustration over the US government's economic stimulus package and the disappointing economic index and the fall of business profits are main reasons. On 28th(ET), in the New York Stock Exchange(NYSE), Dow Jones Industrial Average 30 Index traded at 26,379.28, fallen 0.77% compared to the previous trading session. S&P 500 Index ended at 3,218.44, decreased 0.65%; the Nasdaq Composite Index recorded 10,402.09, slid 1.27%.
Gold prices continued their upward journey, recording high. In the New York Mercantile Exchange, gold was traded at USD 1,944.60 per ounce, increased 0.7% compared to the previous trading session. Gold hit the record high for the 3 consecutinve trading sessions. Some analyzed that demands of gold surged, as the US consumer confidence index in July recorded 92.6, fallen from 98.3 in June.