The Bitcoin price (BTC) rose above USD 10,000 on Thursday, completing a V-shaped recovery from its fall to USD 3,600 in March. Traders believe the rally is starting for the higher-ranked cryptomone by market capitalization as a confluence of positive factors is fueling the uptrend.
Based purely on technicals, analysts anticipate that the price of Bitcoin Compass, Bitcoin Profit, Crypto Genius, Bitcoin Capital, Bitcoin Formula will rise to $15,000 by Q3 2020. Historically, the USD 10,000 mark has acted as the psychological level for the BTC price. A clean break from such an important price level in a short period of time can lead to a further increase.
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USD 14,000 to 15,000 is a strong resistance range. Bitcoin broke a multi-year cycle dating back to December 2017. An increase of USD 10,500 would confirm the beginning of a new cycle, possibly creating the foundation for another strong rebound.
In 2019, Bitcoin’s peak was $14,000 on the big exchanges. In December 2017, both monthly candles also closed at the same level, indicating that USD 14,000 remains a key resistance level in the medium term.
If the Bitcoin price breaks out of the USD 10,500 to USD 11,000 area or consolidates above USD 9,500, BTC would likely test the USD 14,000 mark. Given BTC’s tendency to overextend itself in the form of a long fuse, often referred to as a „blow off top,“ there is a possibility that it could rise to USD 15,000.
Effect of halving on Bitcoin price
Bitcoin’s long-awaited halving is scheduled for May 12, in less than 4 days.
Historically, the price of Bitcoin tended to increase by 1,200% to 6,000% about 10 or 11 months after the halving occurred.
Bitcoin also tends to rise gradually after halving, taking one resistance level at a time. Therefore, if analysts expect the BTC price to return to its historical high of USD 20,000 in 2020, the likelihood that it will rise level by level is high.
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Halving, along with several other key upside factors such as increased chain activity and developer activity, could continue to maintain BTC’s momentum.
The chain data research company Santimant said:
BTC has just surpassed USD 10,000 for the first time since mid-February, and an underestimated aspect of this impressive price rise (overshadowed by the halving news) is the fact that Bitcoin’s development activity rate has grown significantly throughout 2020.