- Gold price renews momentum surging closer to its seven-year high at $1,6,37/Oz as Bitcoin price consolidates in readiness for a rally to $10,000.
- Bitcoin price could dive back to $6,000 to create fresh interest and encourage more buying entries in light of the impending rally.
Spot rate: $6,608
Relative change: -163
Percentage change: -2.43
BTC/USD daily chart
Bitcoin price is just a month away from the 4-year reward halving event. Reduced supply coupled with a technical breakout due to the crash in March to levels under $4,000 are the perfect ingredients for a rally above $10,000 and towards the all-time high at $20,000.
On the other hand, Galaxy Digital CEO, Michael Novogratz believes that as gold price soars towards the yearly highs, Bitcoin price is bound to follow. He also said that the next few months will be very volatile for Bitcoin but 2020 is still the year for BTC.
At the time of writing, Bitcoin price is trading at $6,608. The upside is capped at $6,800 (initial resistance) while $7,000 (tested twice) is the critical level. BTC/USD is likely to make a ‘necessary” dive to $6,000; a move that would create fresh demand, encouraging more buyers to join the market, in turn, contributing to the expected rally towards $10,000.
Support one: $6,401 – Fibonacci 23.6% one-week
Support two: $5,991 – SMA 200 1-hour, SMA 50 4-hour and the Fibonacci 38.2% one-week.
Resistance one: $6,743 – SMA 50 15-minutes, Bollinger Band 1-hour Middle and SMA five 4-hour.
Resistance two: $7,016 – Previous week high and pivot point one-day resistance one.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.