Bitcoin continues to rise
The No.1 crypto currency continues its stable upward trend of the previous days on Thursday. With a rate of 9446 USD, the magical 10000 USD border is coming into sight. Meanwhile, the total market capitalization continues to rise (about USD 260 billion). Investors smell their chance and new money reaches the crypto markets. We take a look at the current situation.
Bitcoin price in detail
With a price gain of USD 1200 in just 72 hours, the USD 10000 mark is now moving into the focus of investors. The 200-day line was crossed after several attempts and Bitcoin has been consolidating in the resistance zone of around 9450 USD for several hours. A 24-hour volume of over USD 30 billion reflects the current interest and a look at the Bitcoin Dominance Index (66.2%) illustrates the supremacy of “digital gold”.
The journey to the 10000 USD mark
At the time of writing, it looks like the BTC will successfully attack the USD 9500 line. Should this happen, there is little to stop the BTC from making a bull run at the $10000 level. The next bigger resistance is at around 9700 USD. From 9800 USD, the Bitcoin would reach a strong demand line. The FOMO (Fear of Missing Out) effect could lift the Bitcoin into the five-digit dollar range in the next few hours.
Reasons for the pump
Bitcoin has already recorded a price increase of about 40% this year. Many traders feared a price collapse over the weekend as a result of the Chinese New Year, but the opposite was true. Currently there are several reasons for the brilliant bull run.
Does the coronavirus have an influence on the BTC price? Many experts clearly affirm this question at the moment. After the virus was able to paralyze several Chinese metropolises, panic is increasing while the Chinese economy is in a tense situation. The coronavirus could have an impact on the global economy and boost the price of Bitcoin. This phenomenon has been observed frequently in the past. In crisis situations, many people fear for their assets and look for investment alternatives. Investors value Bitcoin as a safe haven.
Bitcoin Halving moves closer
The third Bitcoin Halving Event is just around the corner and is fuelling speculators’ expectations. The exact date cannot be determined at present, estimates vary between 60 and 110 days. After the Halving, only 900 BTC’s are mined daily and the inflation rate drops to a value of approx. 1.8%. Due to a reduced supply, the Bitcoin price should theoretically rise (with the same or increasing demand). To what extent the highlight will affect the BTC price is pure speculation. In history, the price did not rise until the following year. However, a lot has changed in the past 4 years.
Altcoins move with
Most Altcoins follow the Bitcoin at every turn on Thursday as well. Ethereum scratches the 180 USD border and the Bitcoin Forks defend positions 4 and 5, while the Litecoin delivers the best performance in the Top 50 with a price increase of about 12%. Currently, the “digital silver” ranks seventh in the cryptocharts. Cardano cannot confirm the bull-run of the previous day today and falls out of the top 10 with a daily minus of about 3 %.