- Analysts pointed to more upside as Bitcoin knocks on $12,000 again
- Technical analyst Eric Thies suggested Bitcoin might not drop belop $10,000 again
- Some argue the next consolidation level is between $10,000 and $14,000
Bitcoin briefly touched $12,000 Monday before closing at $11,923, a slight 2% gain vs. the previous day. As the benchmark cryptocurrency once again tries breaching past the psychological level of $12,000 for the 4th time since Aug. 2020, analysts are expecting further upside in the coming days.
The strength of the $10,000 level provided a good support for Bitcoin. It can be noted that the benchmark crypto tried breaking $10,000 for two months before doing so on July 27. Since then, Bitcoin only touched the $10,000 level once and has never closed below $11,000 since August.
Technical analyst Eric Thies suggested Bitcoin might not drop belop $10,000 again. “We may never see #bitcoin below $10,000 USD again. Alts will moon too. Did you get the most you could, while you could?” he wrote on Twitter.
The analyst who goes by the name of PlanB also hinted on the social networking platform at Bitcoin’s further upside, based on the model he created called Stock-to-Flow Cross (S2Fx), which is predicting a value of $100,000 for the benchmark crypto by 2021.
On the macro side, analysts are also pointing to the decline of the U.S. dollar’s value, which proved to be a catalyst for investors to consider Bitcoin and gold as stores of value, said news outlet Cointelegraph. Gold is a tried-and-tested store of value for thousands of years, while Bitcoin was worth zero in 2009 but is now close to $12,000 today. According to trader Scott Melker, there’s nothing bullish about the USD and that is good for Bitcoin.
The weakening dollar is hinted as a primary reason why NASDAQ-listed billion dollar company MicroStrategy bought $250 million worth of Bitcoin and described the purchase as a capital allocation strategy. In an earnings call, the company said the yield on their large dollar asset has decreased over time and they expect a negative real return or a negative real yield on the greenback soon. As for Bitcoin, MicroStrategy CEO Michael Saylor expects its value to accrete with advances in technology, expanding adoption, and network effect.
Still, Cointelegraph pointed to Bitcoin’s sluggish performance in September of the previous years to suggest that the benchmark token could range between $10,000 to $14,000 in the coming months. The news outlet said a consolidation on this level would be ideal to help strengthen the next rally.