The beginning of the year has been one of the best to remember for Bitcoin. With a substantial increase in the price of the cryptoactive, which positioned its price around $ 10,000 once again. However, how long could this increase in crypto market prices last? According to some opinions, it could be maintained for up to 1,000 days.
The Bitcoin rally
The price of Bitcoin is always one of the most important issues for the crypto world. Well, the higher the price of BTC, the more interest is generated around cryptocurrencies and Blockchain technology. At the same time as the price of the world’s first crypto asset, it usually indicates the trend followed by the rest of the virtual currencies in its price.
Therefore, the bullish rally that BTC has experienced during the first weeks of the year has been generally good news for the crypto community. Boosting the good health of the markets, and the optimism in the future of cryptocurrencies in general.
This price increase has been driven by three simultaneous factors. The first being the proximity of halving in the Bitcoin Blockchain. A process that is expected to cause a significant increase in the price of the cryptocurrency. And therefore it generates upward pressure from now on, in preparation for that moment.
The second impulse is the terrible advance of the coronavirus, which threatens the stability of the world economy. What makes the world’s great investors, look for value reserve assets where they can protect their capital from any collapse in the markets. Bitcoin being an increasingly important option for these types of strategies.
Finally, of course, the same momentum of the price rally leads BTC traders to acquire more and more cryptocurrencies. Trying not to stay out of a possible new price increase. But simultaneously leading to an increase in the price of the cryptocurrency, by increasing its demand.
How long will the party last?
However, in recent days the decline in the price of Bitcoin has made market analysts wonder how sustainable this time rally is. And if it can be maintained until halving gives it a new impulse in the month of May.
Before which, the analyst James Todaro believes that it is not only possible to remain until then. But it is likely that the upward trend can be maintained for at least 1,000 days. According to the weighted average price by volume of the crypto market during these first months of 2020.
According to Todaro, the average volume-weighted price of Bitcoin has been $ 9,120. While during the bullish rally of 2017, even when the cryptocurrency was about to touch $ 20,000, this average price was just $ 6,125.
Therefore, Todaro would conclude that the bullish rally of 2020 has the potential to be much longer and deeper than that of 2017. An assumption against which there are arguments against, since observing the weighted price of Bitcoin during 2018, the same It was also superior to 2017, without any bullish rally. However, Todaro’s analysis is an interesting topic of debate, and that is why it is our Data of Today here at CriptoTendencia.
International Studies student, interested in economics and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and cryptocurrencies in particular.