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What’s the new Crunch about Bitcoin getting stuck at the $12,000 mark and will it be able to overcome it?

27th August 2020 Print

Bitcoin is one space that is always grappled with uncertainty and volatility and there is no getting away from it. Perhaps, the very essence of this industry lies in its basic nature. However, recently the situation has been fickler than ever as we witnessed the Bitcoin graph moving through the sharpest curves.

Though that has always been the case there is something peculiar about it range this time as it seems it is stuck at the chord at $12,000. Yes, if we go by the graphs, we can decipher that the curve has been moving through a range of $11,800 and $12,000 lately and not beyond that.

Taking the instance of last weekend, when the curve finally touched down the $12,000 mark, but in no time, it drowned back to $11,500 the next morning. It could have passed for a one-time case but that has been the scenario for a couple of months now.

This only points to one thing that the most prominent digital currency has somehow got stuck in this range and for some reason is not being able to rise beyond the $12,000 mark.

Now, analyzing this situation many prominent investors have come up with their interpretation of the same. Trying to make sense of this whole situation, they have given their own arguments to back their understanding of the situation.

Going through some of them, we came across this remarkable analysis by Jesse Proudman, CEO of a famous Crypto fund Strix in which he said, that the Crypto market is facing a material resistance and the reason for this is frequent buying and selling of the same. No one is holding the currency for a longer period owing to its uncertainty and that is what has got the market to reach this stagnant position. To move it from there and increase its price beyond $12,000 traders will need to indulge in sustainable buying and holding.

Another prominent name of the industry is Kiana Danial, CEO of Invest Diva who shares similar views on the same. She believes that a number as high as $12,000 or for that matter any price that is above $10,000 becomes a Psychological barrier for the market.

Basically, this theory is in sync with the one which believes that any round number acts as a Psychological barrier and even the slightest price rise above that seems like a lot. Probably, this is the reason that is keeping the price-controlled below the $12,000 zone. That is what happened previously also in the year 2019 when the bullish factors ceased acting beyond the round figure point and the market got stagnant there.

But here is something fresh and new. Not everybody has a kind of pessimistic approach towards this situation because there are people who have developed an optimistic view of the same.

The managing director of one of the most famous and reputed financial companies, Digital Capital Management, says, that Bitcoin has time and again shown that it is capable of dealing with such situations and in the past to it has overcome them gradually.

Pointing to a similar situation that occurred in the year 2019, he brought to our notice that during this time Bitcoin got stuck at a price range and could not move beyond it. It was from September 2019 till December 2019 that the price of Bitcoin fluctuated below the range of $10,000 and could not get past it. But then it happened and when it did in no time it reached the $12,000 mark. So, in his opinion the current situation is nothing as compared to what had happened in the past, those periods of volatility lasted longer, and it was only after a few months that Bitcoin could get past it. However, this year the situation seems to be less bleak and we could expect it to be passed anytime soon.

The price as going by the stats does not show any signs of weakness which hints to only one thing that just a small market movement and it will cross the 12k mark. All it would take is a small but strong market movement to get it passed through this period of consolidation if must say so.

Even the Bullish market is trying to revamp the prices on the higher side and one single action from their side could make that difference. Bulls are constantly pushing the prices higher and that is quite visible as we witnessed that the market bounced off to the 12k mark twice this week alone. this stands for something and that clearly says Bitcoin isn’t weak yet, the market sentiments are clearly bullish, the volume of trading is increasing, and the efforts are in place to get it through this consolidation.

So, it will not come as a surprise that one morning we will wake up to Bitcoin priced higher than $12,000 and it’s going to happen anytime soon so let’s stay alert and wait for it.

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