According to industry analysts, Bitcoin is likely to rebound above $ 10,000 before the New Year arrives. This means that Bitcoin will surge almost $ 3,000 from its current price of about $ 7,000 in 39 days.
According to data, the asset’s stock liquidity rate is flashing a rare buying opportunity, meaning a turnaround is imminent.
Analysts at Bloomberg said that after experiencing one of the worst months of 2019, the king of cryptocurrencies is now “substantially oversold.”
The report points out BTC’s 14-day relative strength index, which is currently in the oversold region. The RSI or Relative Strength Index measures the price movement of a given asset. RSI is generally considered to be overbought above 70 and oversold below 30. It is currently 25.
Meanwhile, the creator of another technical analysis tool called Bollinger Bands said he used two standard deviations to measure volatility, and stated he also saw signs of a turnaround in Thanksgiving.
But analyst Eric Choe told his 139,000 followers on Twitter that he is not optimistic yet.
Choe said that,
“The purpose of his analysis using Elliott Wave Theory is to wait and see which is designed to predict future price movements by identifying the psychology of the crowd as it appears in the waves.”
Despite the Falling Price and the Channel Falling Below $ 7,000, is Bitcoin Still a Safe Currency?
The past few weeks have been tough for Bitcoin. If you look at the weekly trend, it doesn’t look good-but the trend reversal may be imminent.
A famous trader, Anton Kreil, wrote, Bitcoin has fallen sharply since the end of October. He estimates that Bitcoin has lost around $ 110.43 per day since October 25. By completing this linear trend, Bitcoin will be at $0 on January 25, 2020.
Of course, that will not happen. Bitcoin cannot be “returned to zero,” and the chart cannot work linearly. But it does show how weak Satoshi’s creation looks when looking at weekly metrics.
Bitcoin may surge as sentiment picks up on social media
Analysts consider several factors to determine the level of interest in traditional or digital assets. Fundamentals are the first factor to consider and one of the most important factors, followed by the price chart of the price line for technical analysis.
Sentiments are another critical factor representing the emotional state of investors. Emotions may be difficult to measure accurately. Still, with the advent of social media, data can be obtained from the endless happenings in cyberspace, which can help determine the level of emotion in assets. According to social media indicators, since the cryptocurrency boom in China started, Bitcoin prices may be ready to rise again.
According to data from digital asset data provider TIE, tweet sentiment (that is, the number of Bitcoin-related Twitter events on social media platforms) has reached its highest level since China’s pumping.
— Mati Greenspan (@MatiGreenspan) November 26, 2019
By the end of October, the price of Bitcoin had a historic rebound, soaring from $ 7,300 to $ 10,500 in less than 48 hours. However, the large-scale rebound is nothing more than a bearish retest of the previous support turning into resistance. Bitcoin price has been in a downward trend. As the price further declines, the speed and fierceness of Bitcoin will only increase.
Why did Bitcoin rise sharply as Twitter tremors increased?
One theory of why prices are soaring with the increase in Twitter sentiment and gossip may be due to robots programmed to scan news and the general feeling on social media. As this metric rises, robots may excite, which could lead to increased purchase orders.
And yes, or the emotion itself may cause people to increase their interest in Bitcoin and other cryptocurrencies, leading to higher prices. Many factors drive the market, and the mood is one of the most critical factors.
Bitcoin looks ready to expand
Bakkt announced last month that it plans to launch consumer applications financed by Bitcoin and other cryptocurrencies for the purchase of BTC in 2020.
American coffee chain Starbucks will be one of the original backers of the cryptocurrency project, Boston Consulting Group, and software giant Microsoft are some of the first launch partners.
Meanwhile, according to data from the Intercontinental Exchange, Bakkt’s daily bitcoin daily trading volume reached a record high this week, reaching $ 20.3 million in Friday’s 2,800 futures contracts.
Image courtesy of Pixabay