Constant Bitcoin price analysis is crucial for any trader and investor. If you follow the price of bitcoin closely you have probably noticed the recent bullish (up) movements. Since the beginning of this year bitcoin broke the $7500 zone quickly, only to plummet on March 12, 2020. Resulting in a more than 50% loss in just 48 hours. Slightly touching the $3800 resistance and recovering 20% in the next 6 days. As you know Bitcoin can make big movements in a matter of hours.
And recently the market seems to be waking up.
Some say that the upcoming "halving" is making investors adopt a more optimistic expectancy.
This event happens approximately once every 4 years, and basically consist of halving (50%) the number of Bitcoins you get with each block mined. Basic economy theories and past market experiences point to an increase in price, for the demand/offer effect. Which consists of an increase in price every time that the amount available decreases.
And the mere expectancy can cause a significant effect by itself, even before the event occurs.
So, if you want to be ready and know how the big picture looks like, you are in the right place.
You are going to learn more about the current position, possible scenarios, and also the big question: will bitcoin go up again?
Before you look at the chart let me give you some guides in advance:
- We are using a daily chart, so each candle reflects the price movement from one entire day.
- The chart represents bitcoin paired to USD from Bittstamp.
- You can see from March 2019 until April 2020.
- The red boxes represent resistant areas.
- And the green boxes support areas.
- We use areas because is more accurate. Besides the round psychological numbers (3.000,4.000,7.000,10.000), areas represent a wider range which, in uncertain markets, is really useful.
Ok, now you are ready, let's go.
You can see that since March 2019 the Bitcoin price was ranging in a nice "hallway" between $7.000 and $10.000. Even touching the $13.00o zone in June 2019.
The big picture looks like not having a clear tendency but recently things changed.
On March 12, 2020, the price tested (quickly touched) the $3800 support. Finally breaking the $7.000 zone. For the past month, things are looking different, a small uptrend is currently on chart sight. Going back into the $7000 but seems stronger than before.
In this 4-hour candles chart, you can see a type of "stair", gradually testing each price and continuing to go up. It's a really short timeframe but the expectation is clear.
Right now there's a couple of scenarios (none is 100% accurate, as always):
- Now that the price touched the $9000 resistance it can retrace in the previous zone above $7500.
- It can gain strength and break $9000.
Both scenarios are possible neither more probable or 100% certain.
We would need to wait until the monthly candle closes to have a better perspective.
Will Bitcoin price go up again?
Right now the expectancy of the halving is already taking a role in the game.
But as traders, everything is possible. Depending on the news expectancy, the price can move drastically. For now, the picture seems uplifting. The market is gaining strength and trading volume is increasing.
In the current economic landscape stock markets are taking a huge hit. Everything from oil, gold, silver,... But bitcoin seems rather strong. When other systems start to plummet investors tend to migrate into other alternatives. And since cryptocurrencies are considered off-grid. It might be a good alternative right now.
In the next days you could expect: increased price volatility, big investors entering the market, more uncertainty, and bigger media coverage. All of these have an impact on bitcoin's price and behavior.
How to sell Bitcoin?
Bitcoin can be sold in multiple ways. Some more expensive or quicker than others. In times of higher volatility, knowing how to sell bitcoin is key. So here are some quick ways to collect your profits:
- Exchanges, many exchanges are willing to buy your currency for a fixed fee directly to your wallet.
- Local markets, many countries have local websites to buy and sell. The advantage here is that fees vary, and you can get a different deal. It involves higher risks so beware.
- Stablecoins, change your bitcoin to any stable coin of your preference. This is a quick and easy way to secure profits.
Now, what can you buy with Bitcoin?
Luckily in plain 2020, you can buy anything, from website memberships to cars and houses.
The cryptocurrency market is gaining strength in the global economy. Especially in recent years where more businesses are opening their doors to accepting cryptocurrencies.
There are many sites or even local businesses that accept Bitcoin. And more to come.
Price movements are mostly uncertain but with time and the correct tools, you can start to see the patterns and make unbelievable trades.