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Can Bitcoin’s price support a $ 10,000 floor?

July 27, 2020

Bitcoin prices have risen significantly in the past few hours. But for fear that it will return, many wonder if Bitcoin will hold over $ 10,000. Cointelegraph in Spanish has consulted several experts from Latin America and Spain and has given us an insight into the price of Bitcoin, which we share below:

Alejandro Beltrán, director of Buda.com Colombia

Traditional safe haven assets such as gold and government bonds continue to grow due to uncertainty on the stock markets (e.g. S P500). The declines are due to new coronavirus outbreaks and the expectation that the global productive economy will close again. We already saw in March that Bitcoin’s correlation with traditional markets is comparable to “refuge” instruments. We also increased the volume of transactions and futures contracts and reached a record high. We also saw the depth of the market cut sell orders, expecting to sell at a higher price. Breaking the $ 10,500 will be crucial to confirm the upward trend that would have been estimated at $ 12,000 in the past 18 months as a psychological cap.

Nicolás Litvinoff, economist and director of Estudinero.org

In my opinion, the $ 10,000 level is a psychological level, or if you want to show off. If it is above or below the four digits, it is something people can find important as a color note if they have that in mind. However, if you look at a chart and do a technical analysis of Bitcoin, you can see that the bearish trend it has had since the December 2017 highs of $ 20,000 is now breaking and the bearish trend that was previously an upper bound , floor should now serve as a trend. By that I mean the chances are high that Bitcoin will now stay above $ 9,400. This is the level at which this downward trend is. So the $ 10,000 level could break down at some point, but it would be nice if it didn’t break $ 9,400 to get back into the downtrend. And so we can continue with this bullish thesis in the medium term. Regardless, we know that Bitcoin’s long-term upward trend is intact. A break in the medium-term downward trend – since December 2017 – would boost or accelerate this upward trend, which could bring Bitcoin to a significantly higher level than today.

Cristóbal Pereira, organizer of the Blockchain Summit Latam

Can Bitcoin’s price support a $ 10,000 floor?Can Bitcoin’s price support a $ 10,000 floor?

It is often difficult to comment on the price of Bitcoin as this is not always the expected result. In my view, Bitcoin should be around $ 15,000, mainly due to news from the past few weeks from the institutional side, and especially from the United States. We have already seen companies like Mastercard, Paypal and regulators show interest in crypto assets and how Bitcoin is the most important. Today it dominates over 60% of the entire crypto asset market as it is the yardstick. Let us also take into account that we are in a global economic crisis that will last for several months and that the financial system is known to use gold as a store of value. The gold value has recovered strongly in recent months and reached the 2011 prices. Bitcoin has followed a similar trend with very low volatility indices, which to some extent has also proven to be a value reserve asset. Let’s add that it is a scarce commodity like gold, so there is more demand before more interest and therefore the price should go up. There are basic arguments for easily staying over USD 10,000

Carlos Duat, CEO of the Crypto Digital Group

To be able to trust a minimum that BTC can keep above the $ 10,000 level, I think we should consolidate over $ 10,500 as the full margin from $ 10,000 to $ 10,500 is a range where the price will go in these months Resistance is important.

Aníbal Garrido, independent dealer

The uncertainty that is created in the psychological resistances of the market such as the ATH or the round numbers (USD 10,000 or USD 20,000 for Bitcoin) represents a real challenge that can only be compared to the solution with quantum mechanical equations. The very high volatility of the mother cryptocurrency in times of high uncertainty leads to a massive activation of stops and predetermined market orders that trigger the famous snowball effect. As we have seen in the past 24 hours, there are massive liquidations of positions that did not foresee the current bullish scenario. However, recent news from the United States about the viability of traditional bank operators to welcome the protection of crypto assets was the fundamental beginning of this bullish escalation. All this coupled with the immense liquidity in the financial markets, which is caused by the rescue policy of organizations like the FED. This excess liquidity will cause such capitals to take refuge in safer and more profitable assets like gold and its digital nemesis: Bitcoin. But it will only be the true intent of the muscular market (also known as whales), which, by seeking profits at a higher level than the current one, allows price growth to continue and generate the true annual Bitcoin cap that it can it is estimated to be closer to its recent 2019 high and above about $ 13,800.

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