Over the past five days, the Bitcoin (BTC) cryptocurrency rate has grown by 13%, breaking the strong resistance barrier at $ 10,500. Therefore, the coin should rise in price to $ 12,000 by August 4.
As a result of the pump that started on July 26, the bulls managed to break through the resistance at $ 10,000, $ 10,500 and $ 11,000. On Tuesday, the Bitcoin rate reached its maximum since August last year – $ 11,422 (Bitstamp data). Then there was a correction, and BTC/USD price fell to $ 10,760.
The bears broke the support at $ 10,850, which is at 50% Fib recorded during the pump from $ 10,275 to $ 11,422. As a result, the value of the cryptocurrency may fall to $ 10,500. Obviously, buyers will be able to defend this barrier and seize control of the market. The nearest barrier of resistance is located in the region of $ 11,500. If the BTC rate exceeds this level, then the path to $ 12,000 will be opened.
Trader Mr. Chief noted that the dynamics of changes in the BTC rate in many ways repeats the movement in the value of Amazon shares in the period after the bursting of the dot-com bubble before the World Economic Crisis in 2007. Mr. Chief drew an analogy and found out that the price of BTC will reach $ 20,000 by the end of 2020.
Bloomberg analyst Mike McGlone also predicts a rise in the value of Bitcoin to $ 20,000. According to him, the volatility of the coin rate in 2020 coincides with the indicator recorded in 2016. If the trend of four years ago repeats this year, the price of the coin will be pumped up to $ 20,000. In 2016, the coin started at $ 390 and soared to $ 1000. In March 2020, a bullish trend emerged at the $ 5,000 level, and in the case of a threefold increase, the BTC price will rise to $ 15,000. Therefore, McGlone overstates the upper limit by at least $ 5,000.