The price of Bitcoin passed the psychological barrier of $ 10,000 and it seems that it is determined to keep going up to $ 20,000. But is this really true?
In any case it is feasible to think that the current situation could awaken the FOMO of new people who are just getting to know about Bitcoin and blockchain technology and encourage them to invest their money as it was 2 years ago in 2017.
But who are the ones who actually invest and manage the bitcoin and cryptocurrency markets? And more importantly, what do they want? Accumulate cryptocurrencies? or earn fiat money, dollars, euros, soles, etc.?
In general, the price of bitcoin is rising, mostly due to purchases of btc with tether and other cryptocurrencies, not with fiat money.
It will be that binance, bitfinex, bitmex, huobi, bitstamp and other exchanges use the tether and other stable coins, which can simply be printed out of nowhere, freeing tokens, just as the US federal reserve can do with dollar bills and any central bank of a country with its local currency.
Having said that, it is very important to be very careful if you plan to operate btc at this time. It is a decisive zone for the price and very tempting to take profits.
This means that a short trade could be proposed with an extremely attractive risk-benefit ratio of 4 to 1 or even 5 to 1 and thus get the pullback of 35% - 45% that many are waiting to confirm the bull market and the next bull run.
Some data:
It has been 190 days since the minimum price of approx. $ 3159 of December 2018.
In January 2017 the price of bitcoin was less than $ 1000.
Approx. Two years the price of bitcoin was around $ 3000.
The price has bounced back 2 previous opportunities in the area where we are.
Do you think the Bitcoin price will reach more than $ 20,000 this year?