Bitcoin (BTC) price has slipped below $10,000 in the early Asian trading hours to trade above last week’s resistance zone after reaching $10,200 over the weekend.
Bitcoin price has dropped below the long-awaited $10,000 price tag after hitting $10, 200 yesterday. Checking the BTC derivative chart, the market opened with a huge gap as a result of the high trade volume over the weekend.
Using technical analysis, whenever there is a market gap in the derivative market chart, it is bound to be filled sooner than later. This can give a clear insight as to why the market retraced back to hit last week’s breakout zone at $9,816.
Current Market Situation: Bitcoin Price
However, despite the negative retracement, Bitcoin continues to enjoy a good market reception as derived from the growing market capitalization which currently stands at $181 billion.
As the circulating supply stands slightly above 18 million BTC, the 24-hour trade volume continues showing the strength to push the market price even higher than the all-time high, $20,000.
But, as the London market came into action, the price movement was giving an indication of recovering and the bulls taking over the fight. In support of the rising trend are indicators like the moving average and also the RSI, which is a good thing most investors and analysts are relying on.
As the demand of the mother digital coin continue skyrocketing by the day, and the supply slows down due to a finite end, the price will continue seeing the roof and hardly retrogressing. At the time of news reporting, the bulls were showing high tenacity to push the price even high as it approached the $10, 000 mark again.
It is advisable for the traders to trail the stop to avoid losing their investments as the volatility continues increasing. However, depending on the type of trader or investor you are, holding the asset for the long term will yield better income.
As the big event, Bitcoin halving, is getting closer, the cutting short of miners block rewards will significantly affect the whole industry at large. Starting with the cost of mining greatly rising due to the difficulty in solving the blockchain proof of work. The supply rate from the miners will reduce significantly as it will half from the current rate 12.5 to 6.25, hence making it a rare commodity. This combined with the increased demand will henceforth contribute to the rising market price.
On the Flip-side
In a tweet that was published on February 7 by an American provider of investment data Weiss Ratings, Bitcoin was ranked as excellent with a mean grade of A-. According to the group, a good rating was attributed to the strong price performance recently observed.
#Bitcoin upgrade: The Weiss Crypto Rating for #BTC is now A- (excellent), thanks to improving fundamentals and positive price action ahead of Bitcoin's next halving.https://t.co/vyb8wxympt
— Weiss Crypto (@WeissCrypto) February 7, 2020
Weiss has critically analyzed Bitcoin’s performance and the importance of the upcoming halving which is to happen in less than three months.
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