Bitcoin was trading around $ 12,000 per coin. During yesterday's session, this most popular cryptocurrency exceeded this level. It didn't take too long, however, as its price had plunged once again towards $ 11,800. What are the forecasts and opinions of analysts?
What was happening in the Bitcoin market?
The price of Bitcoin broke the key resistance level of $ 12,000 for the 4th time this year. It did not last long, however, and the BTC rate was below this line even before the close of yesterday's session. As a result, this cryptocurrency is now in the vicinity of $ 11,811 per coin. As for the price change in the daily range, it is insignificant, amounting to only 0.31%.
Yesterday's session opened at USD 11,679.32 and closed at USD 11,970. This, in turn, brought her only 2.49% profit.
The weakening of the dollar as a positive indicator for BTC?
There are three key factors that make Bitcoin users optimistic. Although the price of this cryptocurrency did not stay above the resistance important to it, it is the decline in the US dollar that may turn out to be one of the reels driving the increases in BTC.
According to one of the famous cryptocurrency traders - Scott Melker, this fiat currency seems to be heavily weakened.
Many people interpret the decline in the dollar as a positive sign for Bitcoin. It is true that in recent months the USD has weakened against other reserve currencies - but can there really be such a strong pressure here?
BTC below $ 10,000 - Can It Never Happen Again?
This was the assumption made by Eric Thies (technical analyst of the cryptocurrency market). He shared his thoughts on this topic with the community.
Later on, he asked his observers to ask themselves a rhetorical question as to whether they had seized the opportunity when there was time. He also admitted that negative emotions and skepticism may have been a blockade for some people, which prevented them from making an "amazing investment".
Consolidation phase on the horizon?
Ark Invest CEO Cathy Wood recently pointed out that there is little resistance between $ 13,000 and the record high of $ 20,000 in Bitcoin. In his opinion, BTC could remain in a healthy phase of consolidation ranging from $ 10,000 to $ 13,000 for an extended period of time.