Bitcoin
believers waited for a global economic crisis for years, hoping it would prompt
investors to inject hundreds of billions of dollars into the crypto-currency’s
small, liquid market. But the narrative failed big time as bitcoin came face
to face with a real market-crisis-in-making, led by the Corona-virus pandemic.
Fundamentally, its crash from $10,000 to $3,900 has wiped out
weak hands. Investors with higher risk appetite are still holding onto their
tokens or buying it cheaper, according to some analysis. It
shows that around 40 percent of the crypto-currency has not left wallets in the
past two years.
Another crypto data analytics firm drew a similar conclusion,
highlighting that bitcoin’s price halving didn’t deter long-term investors from
holding it. On the contrary, the plunge attracted them to buy bitcoin at
cheaper rates.
So
it appears, bitcoin is trending inside a giant Symmetrical
Triangle since
late 2017, confirmed by a series of sequential troughs and peaks forming two
trend-lines that converge at a roughly equal slope. The height of the Triangle
is about $18,000.
Bitcoin is testing the Triangle Support lower
trend-line for a pullback, which means it has the potential of bouncing back
towards the Triangle Resistance upper trend-line. The price could keep
consolidating within the Triangle range for the remainder of 2020, albeit
staying below $6,000.
But a breakout above the Resistance could lead bitcoin
up by at least $18,000 in the medium-term, according to my opinion. Such a move
could push the crypto-currency beyond its all-time high of $40,000.
Please
note that, I am a fan of crypto-currency and the above mentioned article is my
own opinion only.
