Wobbling at $10K, Can Bitcoin Endure Another Bear?
By Mark Lemon – Cryptocurrency Professional
With Bitcoin’s recent movements showing volatility for its short-term price direction, traders are concerned whether or not the global crypto can fend away another bear market as sentiment seems strong to sell Bitcoin.
This worry has been looming around ever since Bitcoin has been unable to set new highs than those seen between June and July, which is when Facebook’s own crypto project Libra launched, pushing the former’s price from $13,880 and then to $13,200 on June 26 and July 10 respectively.
Ever since then, Bitcoin hasn’t come through when testing those highs, leading to rumours that traders could push the market into a lower range. If selling Bitcoin prevails and the price drops below key levels of resistance, it could continue past $10,000.
Still, analysts and investors stand optimistic due to the belief that the world’s largest cryptocurrency’s demand will stay on its present course as depicted through Coindesk, where the prices would continue to float around $10,000 until the halving in May of next year takes effect. It is from that point on that investors will factor in the new amount of Bitcoin that’s introduced to the market cut in half, where every block in the blockchain will be producing 6.25 BTC, down from 12.5 BTC.
Litecoin recently completed its halving, impacting the hash rate of the network greatly. Many ceased mining Litecoin in search of a more profitable option and we are to see if this could be the same for Bitcoin in the future. Though less will be competing to gain the block reward, the processing power of the network is down reducing throughput. This could encourage some users to sell Bitcoin in uncertainty of profitability but also reduces the suppression of price when the miner’s cash out crypto is generated.
Head on over to our platform to sell Bitcoin UK through your trusted Bitcoin broker, BC Bitcoin.