Bitcoin Breaks Out, $15,000 Is In Sight

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Bitcoin $15,000 Is Right Around The Corner

Bitcoin Broke Out, Again; The Rally Is In Full Force

I stated just a short two weeks ago that Bitcoin was going to move up to set new highs this month. Well, I was right and I don’t mind tooting my own about now. Bitcoin has broken above $9,000 smartly and move up to set a new high. Now that the coin is on the move again new targets emerge and the very first one is the $10,000 level. BTC/USD is now, as I write this, trading very near $9,850 so it won’t take much to reach that level.

The next best target is to project the magnitude of the most recent rally, the run from $7,500 to $9,300, and that is $1,800. Projecting that from the $9,300 pivot point puts BTC at $11,100 and that is well above $10,000. Tyler Winklevoss, one of the famous BTC-owning Winklevoss Twins, says Bitcoin will hit $15,000 soon after it crosses the $10,000 market and I think he’s right. The market is re-inflating post-2020 bear market and getting ready for the halvening that is scheduled for next spring.

In a longer-term sense, the break of $9,000 and march to new highs confirms a much larger pattern too. BTC has been in consolidation for over a month after making a strong run up from $3,000 to $9,000. That run took a little more than three months which suggest we are looking at a three-month long rally ahead of us. The projection for that move is just over $6,000 which puts BTC at $15,000 by the end of September. If BTC makes a move like that what I see happening is a huge inflow of money to the market as traders race to catch the run to $20,000.

When BTC hits $20,000 things will start to get really interesting. BTC will be widely held, demand will be on the upswing and the halvening will be closer than ever. When that happens BTC is likely to break above $20,000. A break above $20,000, depending on what kind of corrective/consolidation action takes place beforehand, could easily lead BTC up to $37,000 in a matter of weeks. I know, $37,000 is a random sounding number but it has technical relevance. The move from $3,000 to $20,000 is worth $17,000. $20,000 plus $17,000 is $37,000 (and I think that is a low estimate).

Bitcoin breaks $15,000 — crypto market crosses $400 billion

Bitcoin’s growth this year seems to know no limit, as the most valuable cryptocurrency continues to set new price records and lead the market to new highs. Today, it broke $15,000, just over a week after it crossed the $10,000 mark for the first time.

Yes, that’s right, Bitcoin rose by 50 percent in just a few days. It’s hard to wrap your head around that, considering that it was only trading for around $1,000 on January 1. Yes, Bitcoin is up 1,500 percent already.

It would be foolish to say that it will stop here. All other coins in the top 10 are in the red today, but Bitcoin is up by over 16 percent on the previous day. In case you don’t know, yesterday was when it broke the $13,000 barrier. Yes, traders added $2,000 to its price since I last wrote about it.

Bitcoin crossing the $15,000 mark means that its market cap has risen sharply too. It peaked at $260 billion today, which is $92 billion more in a little over a week. What’s more, since it has such a large impact on the crypto market as a whole, it also pushed that past $405 billion today.

Bitcoin now accounts for over 63 percent of the crypto market as a whole, which is huge. Bitcoin is basically bucking the trend as of late, gaining against the other coins. With it attracting so much attention from investors, the other major players in the market — most notably, Ethereum — are struggling to keep up.

What is interesting to note is that many folks seem to be risking a lot of capital these days buying Bitcoin. While the appeal is undeniable, it is difficult to see this streak going on for long. At some point, the market will turn and things will come crashing down. Those that have bought cryptocurrency at peak know what I am talking about. It’s not a pretty sight. So, before you pull the trigger, ask yourself whether it’s worth risking a lot of money for what will no doubt be small gains.

Buying on the dips is the best play when it comes to Bitcoin. Why? Bitcoin tends to crash massively after peaking, and those who are patient enough to let the price drop substantially can make a huge profit. It’s a basic approach that has worked perfectly for smart traders this year.

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To give you an idea of what I mean, after it broke $3,000, Bitcoin dropped to less than $2,000. It then picked up again and reached $5,000. The price then dropped to $3,000, before rising again to nearly $8,000. History repeated itself, and the price dropped to around $5,500 after that. It has been going up ever since.

Assuming you bought $1,000 worth of Bitcoin at $2,000, sold at $4,500, bought again at 3,500, sold at $7,000, bought again at $6,000 and sold recently at $12,000, you would have made a profit of $8,000 just by buying on the dips. Smart investment, huge return. And that is without the risk of going to extremes which, while it would have netted more, would have involved far more risk.

In contrast, buying $1,000 worth of Bitcoin at $3,000 and selling even at $15,000 would equate to a profit of just $4,000. That’s a far riskier strategy, with a lower return. Basically, the worst play this year when trading Bitcoin. Food for thought.

Bitcoin Cruises Past $11000, but Where Is It Going?

With the Bitcoin price breaking through resistance levels like a hot knife through butter, it’s time to take a moment to reflect on what’s driving this Bitcoin price rally, where the Bitcoin price is going, and what dangers might be lurking over the horizon.

According to crypto data provider CryptoCompare, around 12:05 (UTC) on June 22, the Bitcoin (BTC) price went over $11,000 for the first time in 2020.

Here is the 24-hour price chart, which shows that the price at the time of writing (13:45 UTC) is $11,082. This means that the BTC price has surged 13.64% in the past 24-hour period:

Here are some more numbers you might find interesting:

  • market cap: $198 billion
  • return on investment (ROI)
    • one week: 27.74%
    • year-to-date (YTD): 201.17%
    • five years: 1754.55%

What’s Driving This Bitcoin Price Rally?

Although it is very hard to pin the reason for this latest price rally on any particular factor, it seems reasonable to assume that this rally is being driven by a combination of the following:

  • Facebook’s Unveiling of Libra.
  • Fear of Missing Out (FOMO)

Earlier this week (on June 18), Facebook introduced project Libra to the world. Although not everyone in the crypto community agrees that Libra (LBR) is a cryptocurrency and/or that the Libra Blockchain it runs on is really a blockchain, the consensus seems to be that Facebook’s official entry into the crypto space and all the publicity surrounding it in mainstream media will only help to introduce more people to the idea of cryptocurrencies and that over time these new people will discover why Bitcoin is widely considered the purest, the most important, and the most valuable cryptocurrency, as well as probably the best store of value (digital gold).

As Mike Novogratz, the Founder and CEO of crypto-focused merchant bank Galaxy Digital, explained on June 18, Facebook’s Libra announcement is “stunningly important” because it has credentialized or legitimized the idea of cryptocurrencies.

As for FOMO, on June 12, at this year’s CryptoCompare Digital Asset Summit in London, Tom Lee, Co-Founder, Managing Partner, and the Head of Research at Fundstrat Global Advisors, reiterated his belief (supported by research done at Fundstrat) that “full blown” FOMO would start once the Bitcoin price goes above $10,000, and that if this happens, the BTC price would be “very likely” to reach $40,000 within five months.

It’s not absolutely clear yet if we are quite back to the heady days of Autumn 2020, but if Bitcoin keeps up this momentum, it appears likely that even if the Bitcoin markets are not experiencing “full blown” FOMO already, we will get there soon.

Where Is the Bitcoin Price Going?

Now that the Bitcoin price has surged past $10,000, where is it going to stop? Well, it depends on whom you believe the most.

Tyler Winklevoss, Co-Founder and CEO at digital asset exchange Gemini, thinks that Bitcoin is on its way to $15,000:

If bitcoin breaks 10k, you can bet it’s going to break 15k. ������

If Tom Lee and his resarch is to be believed, Bitcoin could break its previous ATH (almost $20,000; set in December 2020) and reach $40,000 within five months.

Peter Brandt, prominet trader and author of the book “Diary of a Professional Commodity Trader”, says that Bitcoin could be headed to $100,000:

Bitcoin takes aim at $100,000 target. $btcusd is experiencing its fourth parabolic phase dating back to 2020. No other market in my 45 years of trading has gone parabolic on a log chart in this manner. Bitcoin is a market like no other. pic.twitter.com/wE4j3riMgI

If, as Brandt says, Bitcoin is “a market like no other”, then it is impossible to know that how high it can go and how fast it can get there as long as the FOMO that currently exists continues building up.

What Dangers Might Be Lurking Over the Horizon?

Over the short term, it is inevitable that there will be pullbacks due to profit taking. Over the medium to long term, if any major countries, such as India or China, introduce new legislation that bans the ownership and trading of cryptocurrencies, that could cause a serious price correction (say, 10-20%), of course, but with the Bakkt and Fidelity platforms likely to formally launch later this year, Bitcoin’s next block reward halving due to arrive around 21 May 2020 (and many miners already starting to hoard Bitcoin), and Libra expected to go live sometime in H1 2020, it looks like there are a lot more positive catalysts than negative catalysts for the Bitcoin price.

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