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Bitcoin is holding steady between the $10,500 to $11,000 range for the last two days which could mean it is the new support level for it.
My research tells me bitcoin should be sitting back at $7,500 -$8,000 levels but when the heck does anyone trade based on anything but news and FOMO anymore.
Nearly 2 years later bitcoin seems to be putting the 2017 rally to shame seen here.
The 2017 rally was based heavily on FOMO as news spread for months about amazing gains and new millionaires. We could be entering such a time yet again as reports show still only about 10% of people actually own any bitcoin and most most likely sold when it came crashing down. (BTW advice - you don't lose any money till you actually sell something more often then not your better bet is to do dollar cost averaging where you buy more at the lower price)
What is going to fuel bitcoin passed 20k ?
1 ) Institutions - All last year institutions have been pouring money into blockchain and working towards getting investors access to bitcoin. We are talking about people that make at least $250,000 a year or hold over a million dollars in assets not including their home.
2 ) Hash rates are climbing again and to all new highs which will increase demand for miners again spurring up new businesses. Many of these business take bitcoin and a few other cryptos as a form of payment over credit card.
3 ) Halving is still 11 months away so while we are moving forward now if we continue to for the next 6 months then expect halving to start kicking in on the price rally further fueling the rally. What you start to have is a near perfect timing for a number of things to be happening that will continue FOMO and demand for bitcoin.
This reduction will be from 12.5 per block to 6.25 per block or in per day terms from 1,800 Bitcoin per day down to just 900 with a supply of just 3,220,000 left to be mined nearly 85% of all bitcoin has been mined.
4 ) The world economy is hurting - It might not seem like it when you look at the stock market but the world economy is literally dying at the moment. US debt continues to climb, rates are either staying the same or being cut. This creates a balloon type effect of cut rates, print more money, limited supply of bitcoin.
There are a number of new important factors that are going to be taking place over the next 12 months that are sure to push bitcoin to new highs we have never seen before.
Do you feel bitcoin will hold these levels or are we in for a quick sell off before the rally continues ?
hart to tell imo. the reduction can be possitive for a price increase.
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yup but it wont be happening any time soon. It feels like to me to much upward pressure at the moment. But then again our rally to 20k was based on nothing more then FOMO the whole time lol
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Too early. Too late. Who knows? Bitcoin can be manipulated and is - there are only going to be 21,000,000 available - who determines their worth? That's the whole problem - nobody knows how to determine Bitcoin true value and it may be dumped
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