Bitcoin has been down in the dumps as of late, but some analysts believe that the world’s number one cryptocurrency by market cap could surge by as much as $2,000 in the coming weeks. Is there any truth to their notions?
Is a Bitcoin Spike Heading Our Way?
Just last month, bitcoin had attained a new high for the year 2020 and was trading for about $10,350. This was miles above where it began the year (a measly $6,900), though that number is starting to look rather good by comparison to where the currency stands now.
Bitcoin has fallen by as much as $5,000 in less than four weeks. While the currency initially began experiencing slight drops following its $10,000 high that took it down to the $9,000 and $8,000 levels respectively, fear and global panic surrounding the coronavirus ultimately took a nasty toll on the currency’s well-being. Bitcoin began falling by the hundreds and then the thousands, eventually reaching the $5,300 it’s standing at now.
At first glance, it appears that bitcoin is slated to continue its present downfall, but according to some Twitter analysts, the world’s top cryptocurrency is about to make something of a comeback. One such analyst simply goes by the name “Don Alt” on the social media platform. In a recent message, he explained that he believes BTC is on the verge of incurring a solid spike that could take it into the $7,000 range again.
Re-hedged my spot. I’m flat again. Made almost 20 percent on the position, won’t complain. This could both pump $2,000 or dump $2,000 at this point, and I’m not willing to wait in position to see which it’ll be. I’ll look for entries around the monthly close instead.
To be clear, Don Alt suggests that there’s as much chance for another serious drop as there is for a stellar rise, though it’s important to remember that within two months, the bitcoin halving is expected to occur. Many have believed that this coming May is going to present a whole new scenario for the number one cryptocurrency by market cap, and while the price is now down significantly, a halving event could potentially bring the bitcoin price closer to where it was before.
The Halving Could Still Change Things
The main difference is that there probably won’t be that many additional gains to be had. When bitcoin was trading at $10,000 in February, some were expecting a rise to $14,000, $15,000 or even $20,000 once the halving occurred. Now that the currency isn’t quite at the same level, we can potentially expect another spike, only this time, bitcoin has a smaller range to traverse, so we can probably only expect bitcoin to jump closer to where it was last month.
Still, whatever ends the volatility is probably something to be grateful for.