Fluctuations in the price of Bitcoin (BTC): quite a story! And we’re thrilled at Cryptocurrencies to tell it every day, in our daily BTC price reviews. 3-digit Bitcoin, 4-digit Bitcoin, 5-digit Bitcoin … The seasons go by and while we have barely found the 5-digit club, we are already betting on the 6.
Bitcoin: against all odds, even against traders
The course of Bitcoin recently crossed the symbolic threshold of 10,000 USD and even made a foray over the 12,000 USD.
Mr Stock-to-Flow Ratio, I named Plan B, believes that these bullish movements indicate that Bitcoin is well on track to reach 100,000 USD.
During the week of July 27, 2020, the course Bitcoin has appreciated by almost 17%, reversing the curve it has been in for the past 3 years.
Statistics Skew show, however, that shorts contracts valued at several million dollars are liquidated every day: many traders would therefore bet against the Bitcoin short term.
But the trader Cantering Clark argues that such a big change is a clear indicator of an uptrend.
Bitcoin and altcoins: the pendulum of crypto investors
This new optimism in the markets BTC coincides with another phenomenon observed in those of altcoins: the price of alternative cryptocurrencies has fallen sharply in parallel with the appreciation of that of Bitcoin.
This phenomenon is not new: similar cycles have been observed repeatedly when investors look for safer options, such as Bitcoin, when altcoins are overvalued.
For example, the initial enthusiasm for Challenge had led to a strong appreciation of assets like Compound (COMP), Yearn Finance (YFI) or Synthetix (SNX).
In the long term, when the price of these tokens starts to rise, investors can then take their profits and then invest their funds in other assets.
Bitcoin is still a long way from earning the guarantee of a new ATH, even though PlanB is taking advantage of this bullish period to re-announce the $ 100,000. Bulls must now manage between bullish moments that generate positive sentiment in the markets, moments of decompression, moments of suspense when testing new media, risks of symmetry of Bitcoin price movements and, traumas caused by falls that can create loopholes that could bring bears back into the BTC markets.
Litecoin, welcome in the Silver Age