During the month of August we have saw the rise of different cryptocurrencies, including Bitcoin but… Will this coin roar again as before, or is it just a false hope? Bitcoin. Will It Go Back To $10,000? We’ll tell you in the following analysis.
In August we saw how all virtual currencies reached their annual highs, after a 2018 under water and a 2019 mostly bearish. With the arrival of August we observed changes in prices to reach annual highs.
Once the euphoria has passed the disaster has arrived, as a saying goes everything that goes up tends to go down and on September 24 the cryptoactive market exploded again.
Will the prices of these currencies continue to go down? What can we expect from Bitcoin? We have made a small analysis and because we think that this trend is expected to fall and will touch 5,000 dollars for this Christmas.
September 24 – Market Collapse
September 24th seemed like a normal day until the price of the main cryptocurrency started to fall. In a matter of hours the price fell from 9.718 US dollars per Bitcoin to 8.364 US dollars, Uf!
This fall was not punctual, during the following days the price of Bitcoin reached 7,000 U.S. dollars, causing thousands of investors were again trapped by the euphoria of the price rise.
Bitcoin quote in the last 2 weeks
This fall has an explanation and is due to the expiration of the futures contracts of Bitcoin on the Chicago Mercantile Exchange (CME).
These derivative products had an execution date of September 27. Therefore speculation began to take effect on the price of the currency.
I recommend that in this type of investments you take into account the volatility of the price. And that as any other investment it is necessary to have knowledge of it.
The problem is the great amount of people who invest in these assets without previous knowledge. Normally, getting to lose a lot of money.
On September 24 the speculation on BTC prices due to the expiration of CME contracts caused large amounts of BTC to be offered making a clear excess of supply for which there was no natural demand, leaving the crypto currency in free fall.
BTC being the mother currency or market reference, and being used as a reference value in the world of cryptocurrencies made the whole market collapse, affecting the whole system and as if from a domino token puzzle dragged the other virtual currencies to a well from which it is not very clear if they will come out.
Bitcoin analysis for the coming weeks
The first and most important factor is that it was clear that this fall was not going to last long.
Since it was logical, once the CME contracts expired, the incentive for speculation would leave the crypt market. Resuming natural supply and demand, causing the value of Bitcoin and other crypto currencies to recover.
All this news is quite positive for the BTC, and it looks like the value is going to remain firm and stable over the next few weeks.
The outlook of several media analysts is that the Bitcoin for the end of this year and even for the beginning of next year seem quite promising.
One of the data that shows this is the 800% increase in the future contracts on Bitcoin by Bakkt.
Although all indicators say that the value is going to increase, you have to be patient because Bitcoin is an active reserve of value, this means that many people seek to invest only in times of economic and political uncertainty.
Therefore, and the final analysis we can make, is that due to the agreement between China and the United States that allows a partial economic understanding again, it gives security to investors, thus could diminish the interest of investors in the cryptomoney market.
Ethereum analysis for the coming weeks
Ethereum, the great competitor of Bitcoin, seems to be the great loser of the Bitcoin collapse. Well, although the market is recovering at a regular pace, you can see is much more difficult for ETH.
On the other hand, thanks to the collapse of the crypto market on September 24, it can be shown that Ethereum is still dependent on the BTC price. This is important, as major analysts already claim that this currency had become independent of the BTC price.
Finally, the ETH to be under the influence of the BTC and this we observe in the graphs, when the BTC stopped its rise after September 24, the ETH also did it. The future for this crypto seems to be a trend around 180 US dollars, and this is not expected to break at least in the short term.