As the price of Bitcoin dropped below $10k about four times, analysis shows that the new baseline for Bitcoin will be 10K.
It has been a dramatic week of September when Bitcoin kicked off the month by breaking the $12,000 ceiling. However, this accomplishment was not last as Bitcoin started what would be a good downward spiral that started on the second of September and momentarily cooled down today, September 6th.
During the aforementioned week of selling, the price of Bitcoin dropped below $10k about four times only to manage to get back past the crucial psychological price level. On the four occasions that Bitcoin fell below $10k, its value went as low as $9,969, $9,873, $9,969 and $9,818 respectively. Right now Bitcoin has found solid support above $10,200 and is trading at $10,221.
$10k is Bitcoin’s new baseline
Bitcoin’s behavior maintaining its value above $10k has made the Co-Founder and CEO of Gemini Exchange, Tyler Winklevoss to say that $10,000 is the new baseline for Bitcoin. Mr. Winklevoss also expressed optimism that Bitcoin was currently consolidating before its next move up.
Bitcoin’s Weekly Close is Hours Away
However, Bitcoin still one last hurdle this week to prove the $10k baseline theory by Mr. Winklevoss. This hurdle is in the form of a weekly close that is a few hours away. Bitcoin closing the week above the mentioned $10k level would be crucial in validating not only Mr. Winklevoss’s statement but also in restoring some sort of hope for bulls in the cryptocurrency markets.
Moreover, a close above $10,000 would set the pace for the rest of September and possibly assist in Bitcoin still closing the third quarter of 2020 still in profits.
What happens if it loses its five-figure status?
Mati Greenspan – a former analyst at e-Toro and the founder of Quantum Economics – says that bitcoin miners, as of late, have been moving large quantities of digital money, which may have negatively affected the price. He also stated that the U.S. dollar is making a solid comeback, noting:
“The big level that everyone is watching is $10,000. The crypto market has broken a few psychological levels. When we broke above that level in late July, it was with such force that we never really got to test it as support. Well, this may just be our chance. If things get bad, we may just get another chance to buy bitcoin below $10,000.”