Last week, we talked about the soaring price of Bitcoin that was well on its way to take a crack at $10,500 and $11,000. Bulls were finally making a dominant run and the price went up and up all the time. A reversal was expected by many experts and not in a bad way.
After a week where bears once again ruled the land of Bitcoin, it saw a drop back to $9.4K. And, while many saw it as an ominous sign fearing further drops, those experts who predicted a reversal were right. Bitcoin shot back up to $10K after the bearish weekend, stabilizing itself before taking another shot at higher prices.
Bulls Are Back on Track
After a bearish weekend, bulls are back on track keeping Bitcoin’s price back up. Traders feared that dropping below $9.4K might indicate another bearish trend, but those doubts were quickly erased. As soon as the weekend was over Bitcoin was back up on its feet racing to $10,000 and aiming even higher. It’s clear that bulls are still controlling the price and there’s now a golden cross on the daily chart to drive the bullish enthusiasm forward.
The golden cross is a very positive sign for Bitcoin’s price that has tumbled down to nearly $6,000 before the New Year. A golden cross preceded Bitcoin’s rally in April 2019 although immediate price climbs are not on the horizon. Bitcoin has overtaken the $9,700 level so far and is currently more or less stable at $10K.
Even if there’s no guarantee over an immediate price jump, the good news is expected on the price in the coming weeks and months. Unlike traditional assets or currencies, Bitcoin’s price isn’t affected by a sole factor. In fact, multiple factors can cause illogical volatility, but for now, things are looking good.
The CME narrative right now is that Bitcoin should close the gap at $10,460 if it managed to stay over $10,000. The $10,168-$10,330 zone is already within reach – at the moment, Bitcoin is trading at around $10,160. If it shoots up to $10,500 quickly, it could rapidly ascend to new highs of $11,000 and maybe even higher.
The $50,000 Bitcoin Theory Not That Far-Fetched
Tom Lee, Fundstrat’s founder, recently said that Bitcoin shooting up to $50,000 isn’t a theory – it’s a very possible reality. The target could be hit under one condition – doubling its users that currently stands over half a million. Although it seems unreal, with Bitcoin becoming legal in more and more countries, the number of users could soar sky-high.
Of course, there’s also the possibility that Bitcoin could end up being destroyed. Many governments are going all-out against it and will do anything it takes to ban crypto businesses. Targeting the leading cryptocurrency is a very real threat which is why many are pushing for world-wide Bitcoin legalization.
This, however, doesn’t sit well with banks which is not a surprise considering that it’s a decentralized currency.