Yesterday, Bitcoin lost 4.4%, but bulls were striving to help it close above $12,000. And Bitcoin did, closing at $12,108. Before this correction, Bitcoin saw a 6-day run in which it gained 11.93%. However, the pullback allowed for a retest of the $11,500 level.
After a long and steady growth, Bitcoin (BTC) has slightly receded from a strong position today. At the moment of writing, Bitcoin is 3.60% down, trading at a price of $11,818.76. But despite this correction, bulls are optimistic about the top cryptocurrency’s prospects. They believe it stands good chances of breaking a $13,000 resistance level in the near future.
Notably, the prices of other top cryptos are declining today as well. For example, Ethereum (ETH) is now 4.06% down, $413 per token, XRP has decreased by 6.10% to $0.294 by the moment of writing. Bitcoin Cash (BCH) is 6.40% below yesterday’s price, at $296, Litecoin (LTE) is 6.04% down, $62.66 per token.
Bulls Say Bitcoin Will Bounce Back and ‘Explode’
Yesterday, Bitcoin lost 4.4%, but bulls were striving to help it close above $12,000. And Bitcoin did, closing at $12,108. Before this correction, Bitcoin saw a 6-day run in which it gained 11.93%. However, the pullback allowed for a retest of the $11,500 level.
Notably, the correction took place when the S&P 500 index reached a record intraday all-time high of 3,395.06. Since the lowest point it had in March, the S&P 500 has gained 20%. As some bulls said, this marked “the start of a new bull market”.
Some analysts are continuing to make big assumptions about Bitcoin price, others are more down-to-earth in their predictions. For example, the derivatives trader JSterz believes that “extreme” Bitcoin futures spread means that an intensely strong bullish advance may soon arrive.
It seems extreme to see BTC-Mar21 trading 6% above spot. We have been at this level about four times since 2017. If #BTC breaches 13k+ this thing is going to explode. pic.twitter.com/w9rOl1OXCQ
— Julien (@JSterz) August 17, 2020
Investors Ready to Hold BTC Regardless of the Price
Bitcoin and Bitcoin futures have been lately drawing the attention of institutional investors. As asset managing company Grayscale Investments has reported, they have seen record investment in various cryptos and digital funds that offer. Besides, the company highlighted that Bitcoin seems to outperform gold as a fiat hedge.
Gold has for long been used as a hedge factor against falling global economies and depreciating fiat value. It is mostly purchased by different central banks as a store of value. As for Bitcoin, its price is largely supported by institutional investors including financial institutions, hedge fund managers, and retail investors. Its market price has been stabilizing due to the introduction of futures contracts that save investors from a lot of speculative trading.
Now investors bet on Bitcoin and believe it is worth buying. As the recent Twitter poll has shown, 72% of bitcoin investors are bullish about the cryptocurrency and will hold onto it even if the price somehow falls to zero.
Super proud that 72% of my followers are hard core Hodlers!! #Bitcoin goes to $million+ or to "zero" and we ride it all the way. Vision, conviction and patience is the name of the game. Even if there is only 1% chance of $1million BTC, it is worth it (the option argument). pic.twitter.com/EuKVWCfRnp
— PlanB (@100trillionUSD) August 16, 2020
In July, gold bug Peter Schiff conducted a similar survey. He asked:
“How much longer does the price of bitcoin have to say below $10,000 before you will throw in the towel and sell?”
Out of 28,168 total votes, 57.5% of respondents chose “I’m taking it to my grave.”
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