The $12K Zone Is Now the Key to Bitcoin’s Price Evolution in the Coming Weeks
There is total uncertainty about the short-term evolution of the Bitcoin price.
|Aug 7, 2020||6|
Since the big increase in the Bitcoin price that we had between July 26th and 28th, the feeling in the market is still one of extreme greed. More and more people now think that the Bitcoin Bull Run is about to start.
The FOMO feeling is getting stronger and stronger.
This means that you need to be extra vigilant. I see people again asking me questions about Bitcoin Cash, Bitcoin SV, Bitcoin Gold, ...
These people think they will find a better version of Bitcoin or a version of Bitcoin that can offer them a greater financial gain. This reminds me strongly of the year 2017 when all Sh*tcoins attracted a lot of new investors.
The first thing to remember is that there is only one Bitcoin: the one, the true, the only one, namely BTC.
As I have already explained, diversification with Altcoins is a great illusion. All Altcoins are linked to the success of Bitcoin. Without Bitcoin, these Altcoins would not exist, and you would never have heard of them.
If Bitcoin fails, these Altcoins will fail too. Therefore, by buying these Altcoins, you are not protecting yourself against the risk of Bitcoin failing.
When Bitcoin has successfully completed its revolution, the majority of these Altcoins will have been priced close to zero. You must, therefore, keep in mind that only Bitcoin really matters for the world of the future.
Last weekend, on August 2nd, the Bitcoin price was tested for the first time at $12K.
A strong rejection took place, and the Bitcoin price dropped straight down to $11K.
Throughout this week, the Bitcoin price has slowly but steadily risen to once again be very close to this $12K zone. The Bitcoin price will be testing this zone again in the coming hours or days:
This $12K zone can be considered as the key to the short term evolution of the Bitcoin price.
If the Bitcoin price manages to cross the $12K, we would probably see a rally to $14K since the road is wide open after that. As a reminder, this would bring us back to a high that Bitcoin hasn't reached since the end of June 2019.
There is a significant risk of a lower support test if Bitcoin fails to pass $12K too many times.
At that point, the $11K would be used as support. If Bitcoin were to go below that, we could very well go back to the CME Gap still open at $9,600.
That's a lot of assumptions. So you understand that there is still a lot of uncertainty about the evolution of the Bitcoin price in the short term. Under these conditions, you must remain cautious and focus on your strategy without letting your emotions take over.
Next to Bitcoin, you must have noticed that gold has just broken an all-time record by exceeding $2,000 for the first time in its history. This is quite incredible when you think that the price of gold was $35 in August 1971 when Richard Nixon de facto established the current monetary and financial system.
The price of an ounce of gold has risen by 5.754% in just 49 years:
Absolute gold fans are delighted to see the precious metal fetch such a high price. In my opinion, it is not gold that is strong, but rather the U.S. dollar that is getting weaker and weaker.
This is confirmed by the increase of more than 50% since the beginning of the year in the price of silver, and of more than 65% in the Bitcoin price.
The weakness of the U.S. dollar is precisely something that will help the price of Bitcoin explode in the future, and this is one of the two reasons why I think the price of Bitcoin could reach one million dollars in the future.
Until we know more about what's in store for us in the next few days, continue to be vigilant and make education your priority so that you always have a better understanding of the things that are currently being played out in the midst of the 2020 economic crisis.