What Is Next After Bitcoin Has Just Reached Its 2 Months High At $8.8K?
Explanations for this increase and projections for the coming days.
Bitcoin has just reached its 2-month high with a price of $8.8K. Now that Bitcoin has reached that price, the big question everyone is asking is what’s in store for Bitcoin in the days and weeks to come.
I propose to go back to the two fundamental reasons behind the price of Bitcoin rising nearly 30% in just 10 days and especially what is waiting for the price of Bitcoin in the very short term.
The Risk Of Imminent War Between The United States And Iran Has Changed The Situation
Bitcoin started the year 2020 with a price around $7.1K. The trend was rather downward in the first few days of the year as the price of Bitcoin fell back below $7K on January 3, 2020. Bitcoin was then priced at $6,850.
The price of Bitcoin was on its way down to around $6,500 when suddenly a major international event changed everything. It was on January 3, 2020 that Donald Trump ordered the U.S. Army to kill the Iranian General Soleimani who was in Iraq.
This event has made the risk of a war between the United States and Iran imminent.
As a result of this event, Bitcoin has shown that it is becoming a true global store of value.
Its price rose sharply from $6,850 to $7,380 in just a few hours.
The escalation of tensions with Donald Trump indicating that the U.S. was ready to attack 52 Iranian sites at any time fueled this upward movement in the price of Bitcoin.
On January 6, 2020, the $7.7K resistance was breached causing the price of Bitcoin to rise sharply again to $7,950.
Over the last few days, we have seen a decrease in the risk of war between Iran and the United States with Donald Trump’s less offensive speech.
Rumors Surrounding Craig Wright Have Taken Over
This slight drop in tension between the United States and Iran has seen rumors around Craig Wright take over to drive up the price of Bitcoin.
Craig Wright claims to be Satoshi Nakamoto for months and should be able to prove his claim in early 2020.
Over the past few days, rumors have surfaced that Craig Wright has received the final keys to unlock Bitcoins linked to a fund called Tulip Trust.
This fund is believed to hold over 1.1 million Bitcoins.
These rumors have acted as a catalyst for the price of Bitcoin SV to literally skyrocket in recent hours and consequently the price of Bitcoin Cash and Bitcoin.
Following these rumors, Bitcoin SV is now battling with Bitcoin Cash for 4th place in the ranking of the most capitalized cryptocurrencies on the market.
This is all just rumors.
On the other hand, the court gave Craig Wright until February 3, 2020 at the latest to prove that he is indeed Satoshi Nakamoto as he claims to be.
Should Craig Wright be unable to prove it, sanctions would be taken against him.
On January 10, a few days before Craig Wright claimed to have received his precious cryptographic keys, Beth Bloom, the judge in charge of the case, seemed to have serious doubts about Craig Wright’s ability to prove that he is Satoshi Nakamoto as he has claimed for months:
“Given the Defendant’s many inconsistencies and misstatements, the Court questions whether it is remotely plausible that the mysterious ‘bonded courier’ is going to arrive, yet alone that he will arrive in January 2020 as the Defendant now contends.”
What Is Next For Bitcoin Price?
As we stand on January 14, 2020, the price of Bitcoin has continued to climb after breaking through the $8,460 resistance to reach $8,790.
Tensions between Iran and the United States as well as new rumors surrounding Craig Wright have allowed Bitcoin price to grow from $6,850 to $8,790 in just 10 days.
This represents an increase in the price of Bitcoin of just over 28% as it reached its 2-month record price.
It is as if Bitcoin is trying to regain everything it lost in the fourth quarter of 2019 in just 2 weeks.
This type of movement is usually too fast to last and be sustainable.
On a technical level, the price of Bitcoin is therefore faced with two possible situations in the coming days.
The previous resistance at $8,460 is now a support and we will have to see if the price of Bitcoin manages not to break it when it is tested.
If Bitcoin breaks this support, then we’re probably back below $8K.
Looking up, the next resistance is around $9K.
If Bitcoin manages to break through this resistance, then conditions for a prolonged bull market will strengthen sharply and we could be off to $10K in the coming weeks.