Bitcoin’s price has been all over the place for the past one week. We expected the prices to soar further to $15,000 but bitcoin did the contrary. Prices fell below $10,000, and they are falling again.
A major dip was witnessed on Tuesday and Wednesday to the $9,400 zone after registering $10,600 earlier. Many analysts and investors were quick to predict a bearish trend down to the $8,500-$9,000 level but bitcoin instead formed a ‘W’ pattern. Its price went up to $10,200.
The corrections may be disappointing to investors. To analysts however, it is a huge opportunity to invest and reap big on the onset of a bull run.
New 2019 Highs Soon
According to the Sanmi Adeagbo an AtoZMarkets crypto market analyst, bitcoin’s price is hanging between $9,100 low and $11,100 top. A break below will see a bearish correction to $8,500 and possibly $7,200. On the other hand, a bullish trend could move the price above the $11,100 to a new 2019 high, above $13,900 indicating a continuation of a bullish trend
Sanmi still thinks it’s possible to reach a new all-time high, if the wave continues. Despite the dip, a bullish impulse wave could signal an end to a bearish correction. The development of another bullish wave will surely take bitcoin to new all-time highs above $19,800.
Supply Mirrors Price Movement
Coin metrics has analyzed the amount of bitcoin that is untouched in the last 5 years. A recent analysis report by the same indicated that total bitcoin in holding is on an all-time high. This clearly means that bitcoin is fast becoming a store of value rather than a medium of exchange.
As of the 19th of July this year, the total amount of bitcoin sitting in a wallet for over 5 years was at 3847859 bitcoin.
Halving Accumulation And Miner Capitulation
If you are a veteran in crypto business, then you must have come across PlanB, a famous quantitative analyst. He has predicted that bitcoin could touch $370k levels in future.
He calls the phenomenon “miner capitulation”, crypto geeks call it a bubble burst and it’s when the massive supply of bitcoin will be available at a cheap price. Giant traders buy and pump the market once again and blow another bubble.
Miners turned on their mining rigs after a higher bitcoin rate. The result was a higher level of difficulty and hash rate and then everything went back to normal.
The most recent bitcoin price trend shows the same pumping development. A bottom in bitcoin price last December, followed by a price surge that saw the price rise by more than 200%.
PlanB analyzed the difficulty levels seen in December 2011 when bitcoin was at $4, May 2015 when it was at $230 and December 2018 at $3,890. After each of these times, bitcoin has surged by 100x more. It is likely, bitcoin may undergo the same trend and may reach a $370,000 all-time high.
Bitcoin is scarcer than gold and its supply rate gets reduced by half periodically in an event known as halving.
According to PlanB, the predicted value of bitcoin after halving in May 2020 is $1 trillion. The value translates to a bitcoin price of $55k.