The cryptocurrency market is highly volatile and Bitcoin (BTC) is at the forefront of it. Bitcoin’s value has been historically quite volatile. The high volatility is the basic reason why predicting the price of Bitcoin is a difficult task.
Throughout 2019 Bitcoin’s volatility ranged from $3,500 to $13,500. Despite a year-long bear market, Bitcoin still managed to surpassed Gold that rose 19%, the S&P 500 29%, and silver 15.6%. On the 1st of January 2019, Bitcoin was trading at $3776 and it closed above $7200 on December 31st. Bitcoin was the best performer of the year, gaining 95%.
2020 started off on a positive note for BTC with January being the coin’s best start to a year for seven years, having risen up 30 percent in the month. Moreover, February saw the bulls continue to push BTC pas $10,000 for the first time since September last year.
However, on Saturday, BTC lost the $10,000 level and plunged 3.8% after facing a strong rejection near the $10,500 region. It continued to break supports near $10,200 and $10,000 to enter a bearish zone. There was a close below $10,000 and the 100 hourly simple moving average. The price failed to hold above the $9,800 support area and it declined towards the $9,600 support, with the token currently priced at $9738.
The $300 drop was the second time this week that BTC failed to break past the $10,500 resistance level. Despite the pullbacks that Bitcoin has experienced over this weekend, it has still managed to hold support in the current ascending channel that it has been in since the beginning of January 2020.
The main resistance for bitcoin is near the $10,120 level and the 100 hourly simple moving average. A successful break above $10,000 and then a follow-up move above the 100 hourly SMA is needed for a rally towards $10,500 in the near term.
Crypto community blames a Whale
The majority of the crypto community believes that the price drop was caused by Bitcoin whales. Some even pointed to a well-known Bitcoin whale going by the name of Joe007, for the pullback. Bitfinex CTO Paolo Ardoino posted an image from the Bitfinex leaderboard and tweeted:
“How to recover 10M in 5 minutes@J0E007.”
However, Joe007 sarcastically tweeted:
Major analysts are bullish about Bitcoin
Meanwhile, popular TV host Max Keiser has raised his predicted BTC target to a whopping $400,000. Keiser is one of the early Bitcoin proponents and had predicted that BTC would be priced at $100,000. Now, speaking on news information show Infowars, Keiser stated that his old prediction was too conservative. He said:
“I am officially raising my target for Bitcoin — and I first made this prediction when it was $1, I said this could go to $100,000 — I’m raising my official target for the first time in eight years, I’m raising it to $400,000.”
It’s not just Keiser who believes BTC would be worth six figures, Venture capitalist Tim Draper believes that, by 2024, Bitcoin could be worth close to $250,000.