After the third Halving of Bitcoin, back in mid-May, the price of BTC has not been able to leave the range of $ 9,000 to $ 10,000. Are investors comfortable at this level? I will try to give that answer in this post.
While some analysts point out that Bitcoin may have found its break-even point around 9k, others are concerned that they fear it may not exceed $ 10,000 this year.
Here are the 3 key points to understand the current price of Bitcoin.
1- The third Halving of Bitcoin lateralized the market
In the weeks prior to Bitcoin’s third Halving, the price of BTC maintained an interesting volatility, suggesting that the value of the leading cryptocurrency could go towards new annual highs. Well, that did not happen.
What happened is that investors are still waiting for some signals that can truly boost the value of Bitcoin in a sustained way, and that it is not something speculative such as the December 2017 rally that brought BTC to $ 20,000 due to ” FAITH”.
In short, since the halving of May 11, the price of BTC cannot leave the channel from 9k to 10k.
2- There are no fundamentals that justify a Bitcoin price above US $ 10,000
And to complete the title, there are also no fundamentals that justify the price below US $ 9,000.
In relation to the previous point, there are no true fundamentals that can pull the price above US $ 10,000, at least for now. Although the pandemic helped from March to May that the value will go from 4k to 10k, other relevant data is still missing.
A signal that would be well taken by the Bitcoin market is that large institutional investors fully enter the purchase of BTC. Something that could happen before the end of 2020. For now we have to wait.
3- Mining revenues fell sharply in June
Another no less important fact has been that of Bitcoin mining income during the month of June. According to Coin Metrics charts, compared to May, miners’ incomes decreased by 23%, which shows that the effects of Halving are still being felt.
This fact discourages new investments, at least in the short term.
To finish, the current price of Bitcoin is tied to the aforementioned points. We must be alert to the signals that may occur in the coming days, especially that of the Bitcoin whales.
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