The price of the leading cryptocurrency, Bitcoin, surpassed the 12K dollar mark, then fell by 1,500 in the same hour over the recent weekend. Prices then rose up again to 11.5K, and now currently plays around the 11.8 to 12K range.
The volatility of Bitcoin prices are only suited for those who can handle huge losses because even though there is a steady rise lately, it is still vulnerable to fluctuations and crashes.
There is some occurrence of a resistance as BTC enters five-figure level, specifically around 12,000. CEO of Strix Leviathan says that there is huge potential for the crypto to reach 15,000 USD, but it still has to go through 13,000 first, which can be an accurate indicator for a larger market.
The chances of breaking that resistance relies on the continuous buyer activity. The momentum must not fade. By the time that it pulls through, Bitcoin will set a record high for 2020.
As prices take on five digits, psychological barriers are also coming into play. However, according to analysts, Bitcoin has been through worse. Last year’s 10k resistance was a bigger problem than this and yet prices still came through.
Pushing Bitcoin upwards is a collaborative effort driven by pressure. Volume activity is reported in both centralized and decentralized trading platforms.
Two factors are being eyed as possible driving forces for the rise of Bitcoin. The risk that comes with investment in Bitcoin is not seen as much of a threat to financial stability. In fact, the fact that great risk comes hand in hand with greater returns, creates a rather welcoming vibe to the market.
The depleting value of the US dollar occurring as a result of priority shifts, money from the national currency that is considered stable are being transferred to cryptocurrency, albeit the high chance of loss. But investors are looking at the glass half-full, expecting greater yields despite of its fragility as a financial asset.