Bitcoin [BTC] price broke above $9000 confirming the initiation of the bull market. It marks a series of higher lows without breaking the previous market structure. Currently, the price is en route a new higher high after reversal above $8200.
The price of Bitcoin [BTC] at 3: 15 hours UTC on 28th January 2020 is $9070.
The traders looking for a bearish correction seems to be stopping out above $9000. The break above the 200-Day DMA with $9000 will look to drive out the last of the bears. According to datamish, $50 million in shorts were liquidated in the last 24 hours.
Nevertheless, on lower time frames, the price still needs to break above recent highs around $9190, to move further. The previous range between $9182-$9550 around the Xi pump and the break-out below the descending triangle in October last year will act resistance and consolidation levels.
Moreover, a move below the support around $8100-$8200, could quickly reverse the market sentiments negative as well. However, the probability of that is decreasing.
Recently, Crypto Capital, a firm led by Twitter CEO, Jack Dorsey, announced their plans with the Bitcoin Lightning Development Kit (LDK). It looks like their vision to facilitate low-cost, instantaneous BTC payments is reviving it’s utility not only as a store of value, but also as money.
Moreover, halving which is due in about 100 days (countdown) has been adding to the bullish sentiments for some time now. As reported recently, the supply-side metrics are leaning towards bullish projections.
In all likelihood, halving is still not priced in with $12000-$13000 being the ideal price for the break-even cost of average miners. The increase in mining difficulty due to increasing hash rate is adding to supply-side pressure.
Last but not the least, the increasing ‘risk-off’ element in traditional investments with a series of bad news since May last year has been positive for Bitcoin.
The narration of correlation with global events and Bitcoin is subjective. However, beginning with US-China trade war, Iran-US conflict and the recent Coronavirus we are seeing startling similarities with price moves in gold.
Do you think Bitcoin will gain mainstream adoption in 2020? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com