Bitcoin is rising despite the weakness in the altcoin market. Since its low at $ 9,800 last week, the coin has gained $ 1,000 and over 10% as the price has hit $ 10,850 at the time of writing this article. Earlier today, the coin traded to $ 10,900 when buyers stepped in, seemingly in response to MicroStrategy’s purchase of more than 10,000 coins.
However, the leading cryptocurrency’s rally could end soon.
Analysts in the space are currently viewing $ 11,000-11,200 as a potential region where Bitcoin’s continued rise will come to a halt.
This does not take away from BTC’s long-term foundations, with most respected commentators remaining in a positive state.
Related Reading: This European Crypto Exchange Just Got Hacked For $ 5 Million
Bitcoin’s upward trend could reach $ 11,200: here’s why
Bitcoin’s upward trend could get stuck in the $ 11,000-11,200 range, analysts have said in response to recent price moves.
A market commentator shared the chart below on September 15. It shows that BTC’s price action appears structurally similar to the price action before the capitulation in March.
This comparison indicates If history repeats, Bitcoin will be around $ 11,000 in the top right and then start a steep decline.
Chart of BTC's price action over the past few months from trader NebraskanGooner. Chart from TradingView.com
Another trader shared the sentiment and posted it on this chart shows that $ 11,000-11,200 will likely be the point where BTC’s rally pauses or reverses completely.
Chart of BTC's price action over the past few months from trader ColdBloodedShiller. Chart from TradingView.com
Related Reading: Here’s Why This Crypto CEO Thinks BTC Will Hit $ 15,000 Soon
Long-term trends bullish
Whatever happens to Bitcoin in the short term, most analysts argue that the asset’s long-term trends remain positive.
Mike McGlone, a senior commodity analyst at Bloomberg Intelligence,
Return to Decisive Support Zone – An overdue average stock market downturn is putting most assets under pressure, but we expect gold and Bitcoin to move forward in most scenarios. Falling stock prices encourage more monetary and fiscal stimulus. “
#Gold for $ 1,900, #Bitcoin $ 10,000 Return to Decisive Support Zone – An overdue average stock market downturn is putting most assets under pressure, but we expect gold and Bitcoin to move forward in most scenarios. Falling stock prices encourage more monetary and fiscal stimulus. pic.twitter.com/8dkJ2vdkdg
– Mike McGlone (@ mikemcglone11) September 9, 2020
Dan Tapiero, co-founder of DTAP Capital and other companies, agreed with McGlone’s claim. Commenting on how prominent endowments are soon to own Bitcoin, citing his sense that global macro trends will drive capital towards BTC, Tapiero noted:
“Massive wealth accumulation by global elite. Organizations with a gift of more than $ 1 billion are not required to have full gift tax deductibility. Crazy to think #Harvard brings more wealth than Germany’s GDP. At some point, all donations must have #GOLD and #btc in portfolios. “
Bitcoin is poised to undergo a correction in the near term, especially if altcoins don’t hold up. But given the macro trends, there seem to be few long-term investors liquidating their bags here.
Related Reading: It “makes sense” for Ethereum to decline at current prices: here’s why
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Here's the Pivotal Level Where Bitcoin's Ongoing 10% Surge May End