Bitcoin and Gold continue to rally...The digital currency is about to recover the USD 12K level
US stocks ticked higher Thursday, thanks to the US government's economic stimulus package, the expectation for the Covid-19 vaccine and the improvement of the US unemployment issue. On 6th(ET), in the New York Stock Exchange(NYSE), Dow Jones Industrial Average 30 Index traded at 27,386.98, rose 0.68% compared to the previous trading session. S&P 500 Index ended at 3,349.16, advanced 0.640. And, Nasdaq Composite Index closed Thursday's session at 11,108.07, increased 1.0%, breaking above the 11,000 level. The US blockchain stocks climbed 3.63%.
International gold prices rallied once again. On the New York Mercantile Exchange, delivery in December finished trading at USD 2,069.40 per ounce, up 1% from the previous day. By hitting a record high for five consecutive trading sessions, it is about to record USD 2,100 per ounce. Gold could rally, combined with the increase in demand of gold after the fall of dollar and the improvement in the US unemployment index.
For the last 24 hours, Bitcoin(BTC) recovered the USD 11K level, by showing an upward trend. Bitcoin is gradually rebounding after its price dropped USD 1,200 from USD 12K, the highest price, on last Sunday. Bitcoin rally is unlikely to be end soon. In particular, a correlation between gold and BTC become closer than ever, having the possibility to show a joint rally.
"Bitcoin is likely to enter the bull market. But it is also facing a strong resistance zone between USD 12,000 and USD 12,500. In the short term, we need to see whether BTC can break above USD 11,800. If it succeeds in breaking above the USD 11,800, it can rally USD 12K. Or, its price can be dropped to USD 11,500," said Neo, an analyst of OKEx.
“While Bitcoin’s current move higher above USD 11,500 is another bullish sign, for now it’s primarily a move higher retest of the weekend spike high of around USD 12,100. When BTC breaks above the USD 12,500 level, the key resistance level, its next target will be the prior cycle high around USD 14K. If BTC price falls from the USD 12,500, the first supporting line will be the USD 10,500. And, the second one will be the USD 9,500," anticipated Jon Pearlstone, publisher of the newsletter CryptoPatterns.
"Bitcoin, which briefly showed a correlation with gold, is now stabilized. Bitcoin and gold have two similarities: a limited supply and low growth. If Bitcoin and gold are rising 6 times, Bitcoin price can surge USD 18K, when gold price record USD 3,000 per ounce," predicted Bloomberg, arguing that Bitcoin value is underestimated. Bloomberg also said that on-chain data and the expansion of Grayscale's Bitcoin Trust Fund made Bitcoin undervalued.
"Pantera capital is managing USD 600 million worth of assets, and Bitcoin and Ethereum(ETH) are the top 2 crypto assets that record the highest value. After analysing S2F of the past halving, I found that BTC price can reach USD 115,000 next August," said Dan Morehead the Chief Executive Officer(CEO) of Pantera Capital during the interview with Thinking Crypto.
"Crypto winter has been long and harsh, but crypto summer is finally here. It will more than make up for those cold, lonely days when darkness felt all encompassing at times," tweeted Tyler Winklevoss, the co-founder of Gemini. "This week will be the big week," he added.