Bitcoin is once more near $13,000, just like two weeks ago, after a fairly uneventful weekend during which the price remained mostly stagnant. Thanks to a strong bullish market, the cryptocurrency was able to climb upwards, recovering from the losses it suffered during the start of last week. However, as the market signals suggest, the trading volume has somewhat subsided, showing less interest than during the previous days, although it isn’t as small as to cause any concerns.
According to CNN, the price swings we’ve seen during the last month can simply be explained by new interest in the sector and whales looking for fast profits. As Facebook revealed its plans to release a cryptocurrency of its own, it triggered a new surge in Bitcoin demand, driving the price upwards. Naturally, “key players” in the market awoke from hibernation to quickly capitalize on the sudden surge, shorting the coin for fast profits.
In an interview with CNN, a chief market analyst at ThinkMarkets FX, Naeem Aslam, said that despite the price swings he is still bullish on BTC, predicting the coin to surpass its 2017 highs and eventually climb over $50,000 in a couple of years.
Buyers Still Pushing
Since our previous update last Wednesday, Bitcoin remained mostly stable before climbing up again. The lowest USD price the coin reached was on Friday morning, when Bitcoin touched $10,904.60, while the highest price was hit in the early morning hours today, when one coin briefly traded for $12,983.10. During this time, the 24-h trading volume remained mostly below $30 billion, at one time even dropping below $20 billion. As of now, the volume is sitting at $29.4 billion and rising gradually, showing more interest in the coin, while the market capitalization is at $230 billion.
As our technical analysis shows, the market is still quite bullish, which when combined with a higher trading volume, could drive the price further upwards. Out of 12 technical oscillators 8 are pro-buy while 11 out 12 moving averages are also sending “buy” signals. The SMA 100 is safely over the SMA 200, indicating there is less resistance to be found on the upward course, and the short-term charts are also showing an overall bullish mood. If the winds don’t change, we expect Bitcoin to establish a new support level over $13,000. So, stay put and keep watching the market, especially at the start of next week.
Bitcoin to Climb to $100,000?
While most market analysts are predicting a positive future for Bitcoin, a Digital Assets Partner at Morgan Creek, Anthony Pompliano, is predicting a stellar outcome for the coin. In an interview with Yahoo Finance, Pompliano said that Bitcoin could very well “eclipse $100,000” by the end of 2021. And the reason for his prediction, he says, is the fixed supply of BTC. As supply and demand economics dictate, an increase in demand for the coin will drive its price to move further upwards.
Pompliano sees a bullish future for Bitcoin not only because of Libra, Facebook’s cryptocurrency, but also because of its Calibra digital wallet. He sees the wallet eventually integrating support for Bitcoin, Ether, and other “tokenized securities”, which if happens could allow for hundreds of millions of people to hold cryptocurrency assets more easily.
Popliano likewise predicts that the next key level for the coin will be $20,000, although he says getting there won’t happen overnight. But if it surpasses this level, it will likely pull other traders to the market, making it possible to head to $50,000 or $100,000 over a few years.