Bitcoin has had a miserable few months since hitting its new all-time high this year. The top asset broke through the $30K resistance mark last week and fell to $28K. After that, however, it quickly recovered above $30K and has been trending upwards towards $34K since then. BTC is currently trading at $ 35,270.
The range represents a critical point of resistance for Bitcoin. Breaking the price down could be the start of a bear market – some speculate that Bitcoin could fall as low as $10K if the price breaks through $30K.
But what if that doesn’t happen and BTC stays above $30,000? Well, then Bitcoin could face another massive rally – one that may take the asset all the way up to $100K.
Bitcoin Price Movements
Historically, there has always been a big slump before Bitcoin has recovered. The price usually stays within a certain price range for a certain amount of time. It fluctuates slightly up and down – but never makes a significant movement. After that, the subsequent rally usually leads the coin to a new all-time high.
Bitcoin has now spent 17 days trading within the range of $20K to $ 30K. While that’s not a high number – it’s the first time it’s happened. This means: there is an air hole below the $ 30K line. That explains why traders have struggled to keep the price above $30K.
If the price can hold this line for the next month, then it is likely that we will see $100K per Bitcoin by the end of the year. Holding at a critical point means that there is still confidence in the market. People are buying Bitcoin again because they believe that the coin has reached a new low. And that could have just happened.
Bitcoin has lost over 50% from its all-time high. A number that usually means the beginning of a bear market for an asset. But BTC hasn’t sunk long enough to officially declare a bear market.
Nevertheless: If the rumors that Bitcoin has reached its new low are true, then it can only go up.
It is more likely to go up than down
According to a Bloomberg report earlier this year, the Bitcoin price is likely to reach $ 100,000 in 2021. According to the” Bloomberg Crypto Index”, Bitcoin is in a dormant bull market. So while it might look like a bear market, the asset is only taking a break before its next rally.
Vinny Lingham is a household name in the crypto industry. He is famous for correctly predicting the price movements of coins such as Bitcoin, Ethereum and FIL. His predictions therefore have weight in the market.
Lingham recently posted on Twitter that we will see $100K this year – if Bitcoin can keep the $30K price range.
Other users agree with Lingham under the tweet. One user even predicts a price of over $150k by Christmas.
Another points to the lack of momentum in the market. Since there is not much buying pressure at $40K, the price of the coin is pushed into the $30K range. But at $30K, the buying pressure is high. This prevents Bitcoin from falling below this critical threshold.
The lack of momentum in the market is certainly a cause for concern. But sometimes that’s a good thing. Without momentum, investors are more likely to believe that the market has reached its bottom. Then buy again, so as not to miss this bottom – and this will be the momentum that drives the price up.
Text credits: Newsbtc
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