Crypto News

If Bitcoin follows the gold, it will rise above $12000

Sunday surprise Bitcoin was a blow. The price of Bitcoin fell by 8% in an hour, and many expected his breakthrough, which started on 23 July, came to an end. However, all signs point to the contrary.

In a few minutes after the cryptocurrency for the first time since July 2019 exceeded $12000, a massive increase in transactions for the sale reduced the price below $11000. On some exchanges, the spot price has shown a four-digit drop, while the futures Binance Bitcoin hit $100000. Given the fact that in the past two weeks, Bitcoin jumped from $9000 to $12000 and is trading now around $11200, movement 2 August, it was minor, but nevertheless important.

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This rapid decline is observed in all markets and in technical terms is called “emission rates” (a sharp and rapid increase in price and trading volume in an asset, followed by a sharp and rapid decline in prices, usually at a considerable or large amount). However, looking at the charts of Bitcoin over the past two weeks, you will notice that the growth was not rapid but gradual. In the period from 23 June to 26 June, the price rose from $9,000 to $9800. Only a week after Bitcoin rose above $10000, began to appear on the horizon at $11500.

After yesterday’s motion, fall and recovery, it is likely that traders have placed triggers around the level of $12,000, as a result of the breakthrough led to the sell orders, reducing the price to $11,000 and below. In addition, because the price is safely kept at the level of more than $10,000, and even later could rise above $11000, stop losses were probably placed below.

The need to convert assets into cash is not as relevant as in March 2020, and the majority of the markets due to emission of the Central Bank restored. Consequently, technical factors, and comprehensive supportive macroeconomic conditions explain why Bitcoin has fallen below $10,000, and why he was able to quickly recover to $11000.

Comparison of gold showed a similar movement. Since then, Central banks have started to apply loose monetary policy, gold rose rapidly in price, and now XAUUSD is trading at $1968. July 28, the price of gold fell from $1970 to $1912, that is 3%, which is a significant decline in the gold market. Despite the fall, the bidding continued, and by 31 July, it regained its value, while the 2 of August, the price exceeded $1980.

Given that Bitcoin is seen as a digital refuge for the capital since the fall in March 2020, there is reason to believe that this decline could push the price of the cryptocurrency above, as well as gold.

Source:

cryptofound.com

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