The price of Bitcoin (BTC) has once again reached $12,000 and traders are becoming increasingly optimistic that the digital asset will remain at this key level.
So far in 2020, the BTC has passed the USD 12,000 level four times (all since August 2nd), but converting the key resistance level to support has been a very difficult task.
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Three factors are driving the short- and medium-term bullish sentiment towards Bitcoin among traders: the potential catalysts are the devaluation of the US dollar, the strength of the 10,000 USD support and the strong rebound of Ether (ETH).
The confluence of factors supports Bitcoin’s upward trend
According to cryptomoney trader Scott Melker, the US dollar is losing its momentum, and this can be seen when the dollar falls from a 10-year channel and shows clear rejection. Melker said:
“The dollar looks dead, as I’ve been saying for months. There was a strange euphoria last week that it was bouncing back. Now the decade-long channel drop is clear. It should bounce back to try again at some point, but there is nothing bullish about it. Good for BTC.
Many analysts interpret the dollar’s devaluation as positive for Bitcoin because alternative reserve assets of value are priced in dollars. Over the last few months, the dollar has lost a lot of ground against other reserve currencies. Coincidentally, gold and Bitcoin have seen strong upward movements since mid-April.
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The strength of the $10,000 support level of the Bitcoin price increases the chances of a more pronounced upward movement, and it’s important to note that this is the longest period of time that Bitcoin has been above the $10,000 mark since it reached its historical high in 2017.
Eric Thies, a technical analyst for cryptomontages, hinted that Bitcoin might never fall below $10,000 again. He said:
“We may never see #bitcoin below $10,000 again. The Alts will also reach the moon. Did you get as much as you could, while you could? … Or did you let the negativity + skepticism of the cryptomoney bear market block you from an incredible investment?”
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Based on the recent Bitcoin price trend, Cryptowatch analysts expect to see BTC reach multiple new historical highs by November. The researchers said:
“Bitcoin follows PlanB’s Stock to Flow (S2F) model very well. Assuming 10% of currencies are lost, Etoro forecasts include new all-time highs for mid-November and ~27,000 by year-end.