As Bitcoin hits $12,000 USD once more, there is a positive sentiment in the cryptocurrency market indicating that the price might maintain the value without a correction. This year, Bitcoin price has hit the $12,000 USD mark only four times, but breaking above the resistance has proven difficult and the token has seen a dip in value each time.
Could Bitcoin price maintain its upward trajectory?
Despite the previous declines from the $12,000 USD price tag, investors and traders are bullish about the future of the token. Looking at key factors, such as the diminishing value and domination of the US dollar as well as the positive sentiment across the industry, it’s possible that Bitcoin’s value in the short to medium-term will see healthy growth.
Cryptocurrency trader Scott Melker commented on the correlation between the dollar and Bitcoin, noting that the slight spike in the dollar does not imply that the currency is back on track. Instead, he believes that the dollar is “dead” and that this breakdown spells good news for Bitcoin:
$DXY (USD) Monthly
Dollar looks dead, as I have been saying for months. There was a weird euphoria last week that it was bouncing. Now the breakdown from a decade long channel is clear. It should bounce up to retest at some point, but there’s nothing bullish.
— The Wolf Of All Streets (@scottmelker) September 1, 2020
This correlation leads to a common theme in the cryptocurrency market; that Bitcoin is a better store of value and is the new safe-haven asset. In order to combat the struggle of the economy, traders are urging individuals and investors to look to Bitcoin for a safer bet against fiat. Since April, Bitcoin has seen a rally, likely as a result of the global pandemic and fear about the economy. Gold, too, has seen an increase in value.
Bitcoin might be safe from another decline
Technical analyst and Bitcoin bull Eric Thies went so far as to suggest Bitcoin might have found permanent support above $10,000 USD, saying:
“We may never see #bitcoin below $10,000 USD again. Alts will moon too. Did you get the most you could, while you could?… Or did you let the negativity + skepticism of the crypto bear market block you from an incredible investment?”
While we can’t guarantee that Bitcoin will hold its value above the $10,000 USD trading figure, it’s possible that the token will continue to rise, correct, and rise again. Should this be the case, the cryptocurrency market will be looking at a healthy level of adoption of investors in the upcoming months.