The recent movement of Bitcoin’s price has been quite limited, and we have not seen any major breakthrough until now. However, a recent bullish move made its growing value by almost $1000 in a matter of days. This bullish trend broke out primarily due to the fact that Square announced that it was going to allocate 1% of the company’s cash reserves in BTC. The price went up from 10,600 dollars to around $11,500 with the current price sitting at $11,561. This new move has excited a lot of traders creating expectations that Bitcoin is finally going to show a sustained upward trend in its price.
However, a lot of traders, especially the experienced ones are quite suspicious of the rise in value. They are being extremely cautious regarding investment in Bitcoin as they are not sure if this sudden momentum in the value of Bitcoin is going to stay or not. There is an expectation that this could be just a temporary shift in value caused by the announcement made by Square. Investing heavily right now could lead to potential losses as well if the price slumps in the coming days. If you look at the daily charts of Bitcoin value you would see that it is moving towards the upper resistance range. The resistance zone lies between a value of $12,000 and $12,400. If the Bitcoin value is able to break through this zone it could indicate that an impulse buying wave will hit the market soon.
The first surprise came when the investors who were expecting the value of Bitcoin to go down after the initial surge. Instead, what they saw was sustained growth which was completely opposite of investor expectations. It is also important to realize that Bitcoin has had multiple negative events hitting its value in the past week. However, none of those events was able to change the value of Bitcoin significantly, showing us strong growth that was independent of fiat markets. The only thing that did manage to move Bitcoin’s value was the announcement made by Square. Having $50 million allocated for Bitcoin resulted in the surge that led to a $1000 increase in value for Bitcoin.
The first resistance zone that it had to face was the $11,000 mark which Bitcoin broke through quite easily. The result was a big bullish movement on all crypto platforms. However, this was somewhat expected given the massive influx of value that Square provided for Bitcoin. What we need to pay attention towards no is if it will be able to push beyond the $12,000 resistance point. A lot of people are sceptical about that being a real possibility since Bitcoin has come this far in a single go. This kind of movement in the price of Bitcoin has been observed previously when in 2016 Bitcoin faced a similar bullish trend. A testing period is involved which will determine if Bitcoin’s value will go beyond the $12,000 point. If it does manage to break through, the chance of seeing Bitcoin hit $17,000 is very high.
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