- The Bitcoin price crossed the psychologically important USD 10,000 mark in the early morning hours of February 9 (UTC).
- The sentiment on the crypto market is more bullish than it has been for a long time, with Bitcoin Halving being seen by many experts as the key driving factor.
After the Bitcoin price fell below the psychologically important mark of USD 10,000 on September 22, 2019, it failed to close above USD 10,000. Apart from an intra-day high of USD 10,616 on October 26, 2019, triggered by a short-term pump, Bitcoin has not managed to break through the important mark since the end of September. This opportunity is now back again.
Since the annual high of USD 13,871 on June 26, 2019, the Bitcoin price has been in a downward trend channel. The reasons for the renewed crypto winter after 2018 ranged from Bitcoin whales, to dump-and-dumps, to FUD from China, and the Ponzi scam of PlusToken. But all this seems to be forgotten now.
In the early morning hours of February 9th, the leading cryptocurrency broke through the 10,000 dollar mark. At 03:20 UTC Bitcoin recorded a candle in the hourly chart, which pushed the price from 9,974 USD to 10,048 USD. Many technical analysts were already anticipating the eagerly awaited move above $10,000 10 days ago when BTC broke out of a declining trend channel and crossed the 200-day moving average.
The sentiment in the crypto market has changed significantly since January, when Bitcoin was trading below 7,000 USD. The Fear and Greed Index has risen to 56, a level last reached in November 2019. Numerous fundamental data confirms Bitcoin’s entry into a bull market. Both trading volume and volatility are showing healthy signs.
In contrast to a “pump and dump” the Bitcoin price has risen gradually and steadily from below $7,000 in January to currently over $10,000. The movement has been complemented by a slow and steady increase in volume and volatility.
Bitcoin Halving as a driving factor
A vast majority of analysts attribute the bullish market sentiment to the upcoming Bitcoin Halving in May 2020. However, as CNF highlighted, this thesis is not undisputed. Regardless of this, a positive effect in the sense of a self-fulfilling prophecy cannot be denied. With a Bitcoin price above USD 10,000, more and more mainstream media will be reporting on Bitcoin again. This in turn could trigger a major reaction of FOMO.
The Halving of Bitcoin could thus not only affect the price, but also serve as a narrative that mainstream media will use to capture the attention of their readers. This in turn could lead to a renewed push towards $20,000 as a result of the Halving euphoria.
As Arcane Research noted, Google’s search volume for Bitcoin could be a sign that the Halving of Bitcoin is regaining wider public interest. As the search interest in Bitcoin worldwide shows, there is still considerable upside potential. Compared to the all-time high of USD 20,000, the Google Trends score is currently still only 10 out of 100 (in comparison to the all-time high of USD 20,000), which means that the interest (on Google) is still relatively low (one tenth).
Anthony Pompliano, the co-founder of Bitcoin and crypto investment group Morgan Creek Digital, said on Twitter that “Bitcoin has just reached $10,000. He still thinks “Bitcoin will hit $100,000 by end of December 2021,” citing “fixed supply” and “increased demand” as the reason for Bitcoin’s performance.
Bitcoin just hit $10,000.
I still think that Bitcoin will hit $100,000 by end of December 2021.
Fixed supply. Increasing demand. Time will tell. #Bitcoin
— Pomp ? (@APompliano) February 9, 2020
Technical outlook for Bitcoin
One of the most popular crypto experts on Twitter, Josh Rager, commented on the recent spike above $10,000 that the Bitcoin price is approaching a key range (checkpoint) of the previous range (June to September 2019). According to Rager, BTC needs to break through the $10,100 mark with conviction to further strengthen the bullish trend. However, according to Rager, he would not be shocked if the price were to be rejected at the first attempt at mid 10,100 USD (which happened at 10,170 USD).
$BTC – approaching key area (point of control) of the previous range (June through September of 2019)
Needs to break this area with conviction to keep this trend going strong
Don't be shocked if you see price reject off mid $10,100s the first test here pic.twitter.com/EG1dlZFJVr
— Josh Rager ? (@Josh_Rager) February 9, 2020
Rager also explained with regard to the price development in the next few hours:
Regardless if $BTC experiences a pullback after hitting $10k A weekly close above $9556 would be absolutely bullish