Will history repeat itself? Bitcoin over $ 10,000 could trigger FOMO
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This morning, Bitcoin broke the psychological $ 10,000 threshold, and now everyone is waiting to keep that threshold. Analysts say it will be important how Bitcoin closes the weekly candle. Other information will also have an impact, such as Weiss agency rating improvements. A summary of the most important things that could affect the price of a BTC can be found below.
Historical patterns are repeated
After hovering under the key resistance of $ 10,000, the bulls managed to break this level after a few months. Analysts now point out that Bitcoin is at the beginning of the boom, as history shows that movements above $ 10,000 are usually followed by profits ranging between 14% and 100%.
$BTC breaks $10,000.
— Hsaka (@HsakaTrades) February 9, 2020
Prior instances of breaking it after a substantial retrace. pic.twitter.com/M3vloBouYj
One other factor that could allow the cryptocurrency to continue to climb in the near future is the closure of the bullish weekly candle. Despite a potential price drop, it is essential that the bulls keep the Bitcoin price above $ 9,556 before closing tomorrow.
Regardless if $BTC experiences a pullback after hitting $10k
— Josh Rager ? (@Josh_Rager) February 9, 2020
A weekly close above $9556 would be absolutely bullish pic.twitter.com/dK5fc9v6aP
Weiss rating of Bitcoin A-
American rating agency Weiss Ratings has upgraded Bitcoin’s rating to “excellent”. Bitcoin has been upgraded to A- rating thanks to improved fundaments.
#Bitcoin upgrade: The Weiss Crypto Rating for #BTC is now A- (excellent), thanks to improving fundamentals and positive price action ahead of Bitcoin's next halving.https://t.co/vyb8wxympt
— Weiss Crypto Ratings (@WeissCrypto) February 7, 2020
At the end of March 2019, Weiss Ratings rated BTC as XRP and EOS as the cryptocurrencies that have the best combination of adoption and technology. Now Bitcoin has a higher rating than both, with XRP on B- and EOS on C after downgrade due to its centralization.
Halving and FOMO
US cryptoexchange Coinbase said yesterday that Bitcoin’s halving would bring this asset closer to digital gold. The supply of bitcoins is limited by mining and new bitcoins are extracted as a reward each time a block of transactions is mined. The initial level of 50 BTC per block has already gone through two halvings, lowering it to the current 12.5 BTC per block. After mid-May 2020, the mining of rewards for each new block will decrease to 6.25 BTC.
In May 2020, #Bitcoin will experience its third “Halving.” Bitcoin is a digital asset with a fixed & predictable supply, unlike dollars. Bitcoin is designed to be scarce, like gold. Here’s what that means and why it matters in historical context: https://t.co/CLXp7Okb04
— Coinbase (@coinbase) February 7, 2020
Crypto Michael predicts that the $ 10,000 level will lead journalists to write about bitcoins and use halving as a justification. This, in turn, can cause a huge FOMO response to the wider public.
$BTC #BITCOIN
— Crypto Michaël (@CryptoMichNL) February 8, 2020
I don't think the halving was priced in a year ago and I still don't think it will.
When price breaks $10,000 -> newspapers will start to write about $BTC again and use the halving as a narrative.
The FOMO in 2016 also started 5 weeks beforehand. pic.twitter.com/4waqxjLlTS
Coronavirus and panic in Asia
Bloomberg called the coronavirus a so-called black swan, and it is certain that this epidemic will have an impact on the economy. Due to the global interdependence and location of most production capacities in Asia, this will be reflected globally. Meanwhile, Bitcoin and other cryptocurrencies seem to benefit from it.
It is estimated that if the quarantine measures continue until the end of February, “the economic impact will be a 0.8 percent reduction in global real GDP in the first half of 2020 in the first quarter and 0.5 percent in the second quarter.” [CNBC].
Bitcoin’s alternative financial system may prove immune to the negative market impacts at this time.
Summary
And what is your opinion? Will Bitcoin hold $ 10,000 and lead to further growth? Do you still know about other factors that could affect price?
