- Bitcoin was able to stabilize above the $10,000 mark after the correction of the weekend.
- Analysts continue to be bullish and expect the price to rise in the coming days.
Bitcoin initiated a strong correction of 21% over the weekend after its renewed failure to break through the $12,000 mark and has fallen several times below the $10,000 mark. However, the Bitcoin price recovered quickly and stabilized at $10,240 at the time of writing. Bitcoin shows gains of 1.28 % within the last 24 hours. The market capitalization has risen to almost $190 billion.
Blockroot’s founder and Bitcoin trader Josh Rager describes that there are many bullish signals for BTC and therefore an imminent positive price development. Initially, Bitcoin was able to maintain its important support level along the $10,000 mark and has shown an upward trend in the last few hours. Furthermore, the presidential election in the United States in November is just around the corner.
Rager points out that Donald Trump is likely to pump money into the financial market so that the prices of shares and other assets such as Bitcoin will develop positively, thereby attracting the favour of the voters. He advises his followers to be careful in the coming days and weeks, which is why he plans to hold Bitcoin, Ethereum, Chainlink and some other cryptocurrencies for a longer time.
Also holding a decent amount of cash & cut some moderate positions on alts that I don't care to hold for another year
Didn't sell the top but still booked nice profits & will continue to yield farm
— Josh Rager 📈 (@Josh_Rager) September 7, 2020
Other analysts support Rager’s bullish view and also forecast a soon rising price. “Cold Blooded Shiller notes that Bitcoin and other Altcoins such as Ethereum look similar and that important support levels have been tested and are holding. In his opinion Ethereum shows the strongest bullish momentum the crypto market has seen so far this year.
Unless $ETH powers above this level it's nothing but another scam bounce before lower. Not touching anything until the lows are gone or ETH show strength LTF.
This drive does have the highest bullish momentum we've seen all day. pic.twitter.com/Ef27hmxgZS
— Cold Blooded Shiller (@ColdBloodShill) September 7, 2020
TheBirbNest founder “CRYPTO₿IRB” urges caution as support has held along the $10,000 mark but new resistance may emerge along the $10,500 mark. Bitcoin must be able to overcome this level again in order to start a new uptrend in the short term. He advises his followers to work with stop limit orders to avoid losses in case of a major correction to a price level as high as $9,6000.
— CRYPTO₿IRB (@crypto_birb) September 7, 2020
“Cantering Clark” expects Bitcoin to close the gap in the Bitcoin Futures Chart, also known as the CME Gap, which was created on the Chicago Merchantile Exchange, at $9,700. These gaps occur when the price of Bitcoin changes significantly during the weekend closing of the futures market from Friday to Monday, creating a large difference or gap between the closing and opening prices. Since the official launch in December 2017, the gaps have been closed very reliably.
I can see something like this happening for $BTC.
Oddly enough, though it is a meme, I think taking out the CME gap would give a little bit of buyer inspiration and add to the narrative. pic.twitter.com/EhNibTCcWk
— Cantering Clark (@CanteringClark) September 7, 2020
Institutional investors are increasingly investing in Bitcoin
The price increase of Bitcoin to $12,000 is attributed to the ongoing purchase of Bitcoin by Grayscale as well as its major TV campaign on crypto currencies on American television. Kavita Gupta, a respected scientist at Stanford University, also confirmed this and explained that especially large institutions have entered Bitcoin and the crypto market:
In the last two years we have seen traditional pension funds like Fairfax County’s Virginia’s Police Officers Retirement System, traditional banks like JP Morgan, Signature Bank, and multiple billion dollar family offices across the country holding and investing in Bitcoin and other cryptocurrencies.