Bitcoin price briefly crosses $10,000 – Halving to fuel further rally?

Bitcoin Price May
  • Bitcoin price briefly crossed the psychologically important $10,000 mark and made an impressive comeback from the March low of $3,600.
  • The buying euphoria is fuelled by the upcoming BTC halving event.
  • Stimulus measures and supportive financial policies are driving up institutional interest in cryptocurrencies.

Bitcoin Price - 08-May-2020 1

Cryptocurrency Heat Map by Coin360

As Halving euphoria spreads far and wide, Bitcoin price has briefly crossed the psychological mark of $10,000. The move came fairly fast as Bitcoin price moved up to touch the 5-digit figure of $10,015 mark after its March lows that saw the price hit $3,600.

Bitcoin price reclaims its lost glory

In the past ten days, the BTC/USD pair has made a remarkable 35 percent rise and attracted even traditional institutional investors to its fold. Faithful BTC investors or traders who bought at $3,600 are now sitting at cool 3X returns.

Bitcoin Price - 08-May-2020 4

Bitcoin Price Chart by TradingView

Since touching the 10K highs, Bitcoin price has since retreated to hover around the $9,980 mark. There’s formidable technical resistance at $10,300 and then one more at $10,500. The latter can prove tough to break since it is the latest high point of February 2020 before the prices fell violently.

The resistance also represents a pivotal point (50 percent) in the long-term uptrend move from 2012 to 2017. Underneath, there’s significant support at $9,800 to sustain any immediate volatility.

Bitcoin price soars while altcoins suffer

The sharp rise in BTC/USD price is attracting many new first-time investors to its fold. However, they are most interested in BTC only and not other cryptocurrencies. Naturally, the Bitcoin dominance ratio, which reflects the share of BTC among other cryptocurrencies, is rapidly rising. Currently, the Bitcoin market cap stands at $183,518,402,875, which is roughly 68 percent of the entire market cap.

Bitcoin Price - 08-May-2020 3

Bitcoin Price Chart by TradingView

The altcoins are feeling the heat of a surging Bitcoin. Most altcoins have suffered severe damage, and their value eroded significantly in the past two months. The declining trend won’t be arrested soon as the upcoming halving is sure to fuel more BTC buying euphoria. As pointed out by Alan Masters above, halving can even push prices near $15,000.

It remains to be seen whether this rally will sustain post-halving or we witness a 2017-like scenario.

Disclaimer: The information provided is not trading advice but an informative analysis of the price movement. Cryptopolitan holds no liability towards any investments based on the information provided on this page.

Gurpreet Thind

Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.

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