(Newswire.net — June 12, 2020) — The value for a Bitcoin (BTC) has experienced several changes in the last six months. In February, traders and investors were getting excited at the possibility of a continued move above $10,000. Their enthusiasm dwindled rapidly after BTC quickly fell to the $4000 range in March. However, since the rapid decline, BTC has climbed back to the $10,000 range, which has several BTC holders wondering if a bear market dip or price hike is coming in the future.
Will BTC Miners Hold for Higher Prices?
One crucial variable affecting the price of BTC is related to the individuals who mine the coin. The cost of mining can be expensive and is based on the price and amount of electricity used each month. The job of a miner is to help keep transactions running smoothly on the blockchain by solving specific cryptology puzzles. A block reward is given to a miner when a block is found. Recently, the Bitcoin Halving occurred, which cut the block reward in half. If miners aren’t receiving as large of an award, they may be required to sell some of their BTC to cover electrical expenses. Taking this action may result in BTC moving lower due to less buying.
Mining Stats Indicate a Positive Inventory of BTC Being Held Recently
For a rally to occur over $10,000, the price needs to stay stable over that level, and BTC miners need to hold the coins they receive as rewards. This is one scenario that would help keep BTC moving higher and avoid another bear market plunge. Analyzing data from the blockchain indicates that miners have been keeping more BTC than they’ve been selling. If this data continues to stay on the positive side, it could help keep the enthusiasm alive with bullish investors who are hoping for a move higher in price.
Fearful of Another Bear Market Drop
Several investors who were excited when BTC reached the $10,000 level earlier in the year are likely still feeling the pain of such a tremendous drop in price. If they held throughout the decline and rise, they might want to take gains at the $10,000 level to avoid the paper losses of another significant plummet in value. Getting help with the probability of a move lower or higher may be more straightforward by visiting bitcoinscycle.com. Keeping the price above $10,000 allows crypto investors to get back in at higher prices if they have already sold. This type of price action can take BTC higher, but it depends on the number of investors who dumped at the lows and never got back in.
Expectations From a Prominent Trader
Earlier in the year, a prominent trader called for the price action to drop towards $3000. While it didn’t reach that low, it came close and proved that trader correct. This trader is still bearish at the $10,000 level and has price targets as low as $1000 for BTC in the future. If price action can hold above $10,000 and starts to fall once again, it may create fear in the market and trigger stop-sell orders, which could help fuel the selling.
The tension is high for both bulls and bears at this current level. Whichever way price action breaks, it may end up being fast and furious.