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Top analysts are forecasting a price of $ 12,000 a month for Bitcoin

June 1, 2020

The price of Bitcoin (BTC) could rise to $ 12,000 next monthsome traders say. Predictions for an expanded uptrend emerged when the dominant cryptocurrency stabilized for about five days with decreasing volatility.

Historical, Bitcoin tends to move strongly after a long period of stability. For over 100 hours, the price of Bitcoin remained in the 2% range, which is unusually low volatility for BTC.

Why do analysts say it is possible to reach $ 12,000 and why is Bitcoin expected to be volatile?

Since the end of 2019, Bitcoin’s price has moved within a cycle determined by its historic high in 2017 and the local high in June 2019. Any attempt to break out of the cycle in the past 10 months has resulted in a sellout in the cryptocurrency market.

Top analysts are forecasting a price of $ 12,000 a month for BitcoinTop analysts are forecasting a price of $ 12,000 a month for Bitcoin

Bitcoin has not been able to break out of its multi-year cycle in the last three attempts

Bitcoin has not been able to break out of its multi-year cycle in the last three attempts. Source: TradingView

In October 2019 and February 2020, the price of Bitcoin rose to $ 10,584 and $ 10,550, respectively. Over the next four weeks after exceeding $ 10,000, the price of BTC fell to $ 6,400 and $ 3,600 respectively.

The question that technical analysts are asking is whether Bitcoin is ready this time to break out of the dreaded cycle and initiate a new upward trend.

The most compelling case for an early $ 10,500 breakout that would fuel a new bull market is the continued consolidation of BTC at $ 9,500.

The term consolidation in trading refers to the price of an asset that slowly decreases as traders approach the market with caution. Continued consolidation just below a key level like USD 10,000 over a relatively long period indicates that the likelihood of an outbreak is increasing.

A well-known trader like Benjamin Blunts, who predicted Bitcoin to be a minimum of $ 3,150 in 2018 said::

“When BTC finally breaks out of this area it will be explosive. I would say $ 11,000 in 3 weeks and possibly $ 12,000 in a month.”

A short-term bullish scenario for Bitcoin

A short-term bullish scenario for Bitcoin. Source: Benjamin Blunts

Outstanding bitcoin options trader Theta Seek has raised a similar point. By looking at another record, the dealer can He suggested BTC is unlikely to stay at $ 9,000 for a long time:

“I’ve seen a lot of bearish tweets, but I think this is the last 1-2 weeks you can buy BTC under $ 9,000. “

What is the bearish alternative scenario?

Most of Bitcoin’s short-term bullish forecasts are based on the assumption that Bitcoin is over $ 10,500 and is breaking with the current trend.

If he sees no price hike above the $ 10,000 to $ 10,500 range, Theta Seek said the alternative is a 20% decline following a cascade of settlement in the options and futures markets.. The dealer he showed::

“The logical conclusion is that one of the two will happen. i) We are overjoyed and these people are taking out more loans to further increase the price. ii) Or we collapse> 20%, which results in 80% LTV loans being liquidated and cascading settlements leading to the sale of USD 10 billion BTC ”.

Bitcoin’s price is at a crucial point, and its price movement over the next seven days is likely to determine its trend in the third quarter of 2020.