2020-10-1 23:04 |
The price of Bitcoin (BTC) has advanced from $9 825 above $11 000 in less than three weeks and the current price stands around $10 690. Bitcoin has found strong support above $10 000 and if the price jumps again above $11 000 that could be a very good opportunity for the short-term traders.
Fundamental analysis: Miners could trigger selling pressureBitcoin is the first cryptocurrency to have existed and receive wide acceptance. Bitcoin can be accessed by everyone on the internet and enjoys the support of both developers and users communities.
The demand for BTC/USD is continuously rising and according to some prediction, Bitcoin will surge above $20,000 again. A very good team stands behind this project, the fundamentals of this cryptocurrency are improving but there’s still a level of uncertainty for the potential investors.
Bitcoin does have many advantages that physical currencies do not provide its users; however, it also has its disadvantages. Every day, more businesses accept Bitcoins because they want the advantages of doing so, but the list remains small and still needs to grow in order to benefit from network effects.
Bitcoin has found strong support above $10 000 and some analysts believe that BTC may start trading higher in the upcoming weeks. Despite this, I feel that the price of this cryptocurrency can weaken in the upcoming days and maybe it is not the best time to invest in Bitcoin(BTC).
If miners unexpectedly sell a substantial amount of Bitcoin, it could result in an extreme correction as a small price change could provoke liquidations from traders with high leverage. The risk/reward ratio is not good currently and my opinion is that there are lots of cryptocurrencies with more opportunity.
Technical analysis: Bears are focused on breaking the support level at $10 000 Data source: tradingview.comOn this chart, I marked important resistance and support levels. The important support levels are $10 000 and $9 000, $11 000 and $12 000 represent the resistance levels.
If the price jumps above $11 000 it would be a signal to buy Bitcoin (BTC) and we have the open way to $11 500. Short-term traders should always use “stop-loss” and “take profit” orders when they are opening their positions because the risk is extremely high.
Rising above $12 000 supports the continuation of the bullish trend and the next price target could be located around $12 500. On the other side, if the price falls below $10 000 it would be a “sell” signal and we have the open way to $9 500.
SummaryAs long the price of Bitcoin is above $10 000 this cryptocurrency is not in the “sell” zone but my opinion is that the price of Bitcoin can weaken in the upcoming days. If the price falls below $10 000 it would be a “sell” signal and we have the open way to $9 500.
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