Bitcoin shows great volatility. How about its future?...Will it gain momentum or just show a bull trap?
During the weekend, Bitcoin showed a great volatility with market fluctuations. For last 48 hours, BTC price reached USD 12K, the highest level, and later fallen to the level of USD 10,500 as some traders tried to sell the cryptocurrency. Now, BTC rallied by the level of USD 11,100.
"The next few days are critical as they will provide deeper insight into whether Bitcoin has started a sustained up move or if this was a massive bull trap," reported Cointelegraph.
But many are still optimistic. "With the US government's plan to introduce the USD 100 million economic stimulus package, gold price hit the record high, and BTC price is also surging. BTC price can record between the USD 15K and USD 17K in next few weeks," suggested NewsBTC, citing fractal since the halving in 2016.
"USD 11,500 and USD 11,800 is the resistance zone on BTC chart, which maintained last summer and in December 2017, when BTC entered bull market. If BTC succeed in breaking above the resistance zone, a new bull market can be opened," argued Michaël van de Poppe, the contributor of Cointelegraph.
"Japan's traders, who've been reluctant to invest, restarted to trade Bitcoin this week. With the rise of BTC price, many traders, who missed to purchase gold, is now prone to trade the cryptocurrency. If BTC bulls maintain the supporting line between the USD 10,800 and USD 10,400, BTC can rally by USD 12,113.50. If BTC breaks above the price, the cryptocurrency can show upward movement," anticipated Rakesh Upadhyay, citing Yusuke Otsuka, the co-founder of Coincheck.
Last week, Michael Novogratz, a billionaire and the Chief Executive Officer of Galaxy Digital, expressed his optimistic view on BTC, saying that "BTC price would record USD 14K within the next 3 months, and reaching USD 20K by the end of 2020, due to the global liquidity pump and an influx of retail investors".
"USD 12K can be critical for BTC to gain momentum. For next bull run, BTC has to consolidate around the level of USD 12K," suggested Vinny Lingham, the co-founder and CEO of Civic, on his twitter account.
It was a good call last time. This time it’s likely that Bitcoin holds $12k and consolidates around that level while capital moves into alt coins to test those waters. If $12k holds for a 3-5 days, then we can expect the next phase to be a buildup for a much bigger run... https://t.co/wQDUnp4rAZ— Vinny Lingham (@VinnyLingham) August 2, 2020