In a context of uncertainty, decidedly delicate for traditional stock markets, the upward movement of the price of bitcoin is evident: BTC, in fact, is increasingly asserting itself as a store of value.
Despite the fact that the majority of analysts in recent weeks indicated a consolidation of the downward phase, today the price of bitcoins is back just below the threshold of 12,000 points.
This threshold, at the beginning of July, had rejected the rebound phase and then saw the prices go to the $13,800-13,900 area (the highs of 2019). Currently, the 12,000 dollars are a more psychological level rather than a technical one.
The price of bitcoin seems to give indications of a steady trend, even though the rest of the sector continues to be struggling. If we look at the daily trend, bitcoin marks the best upward movement of the day, preceded only by the strong rise of Binance Coin (BNB) which with a +11% rises above 31 dollars and benefits from the latest news regarding TrustToken’s stablecoins.
Bitcoin is thus the second-best upward movement among the first 40 crypto for market cap, with a 3% on a daily basis, and a price that fluctuates around 12,000 dollars. This new impulse sees the dominance rise to 69%, one step from 70%, levels that bitcoin hasn’t seen since March 2017. Bitcoin continues to dominate the other altcoins: Ethereum drops to 7.8% and Ripple further updates the lows of the last two years, going to test again the threshold of 4.3%.
The total capitalisation of the sector remains around 310 billion dollars.
Bitcoin as a store of value
Yesterday, oil took the stage, slipping below the threshold of 60 dollars and precisely below 55 dollars. The graph seems to be directed towards the 50 dollars, levels of December 2018, the lowest lows of the last three years. The downward trend benefits the price at the gas stations, ideal during the holiday period.
This shows that the current geopolitical and economic phase has returned to a context that, as many financial analysts indicate, would summon the recession of the US economy in the coming months.
This only shifts capital to safe-haven assets such as gold and bitcoin. Yesterday, gold broke the wall of 1,500 dollars, prices that gold has not seen since early April 2013.
Bitcoin (BTC) price movement
The movement of the price of bitcoin, which currently shows a short-term bullish trend, would see a continuation of this upward trend if it were sustained by volumes in the next few hours. The volumes of these days could, in fact, push the price to test the next short-term resistance identified in the 12,300 dollars area.
A possible extension above this level would project prices first to 13,000 dollars and then open wide spaces to support the next monthly cycle with a target of 15,000 dollars. But before confirming these bullish indications it is necessary for bitcoin not to return to the psychological threshold of 10,000 dollars in the next few days and to the technical threshold of 9,200 dollars.
Only a downward movement below these levels in the coming days and weeks would exclude the bullish hypothesis.
Price of Ethereum (ETH)
Ethereum continues, despite the difficulties, to stay at the level of $225. For ETH it would be necessary to go up to 235 dollars, a technical threshold that in May and June proved to be supportive but that has now become resistance.
For Ethereum, the upward trend remains valid if prices are kept above the dynamic trendline that began in February and which is currently rising to $210. Only a sinking under this level would open wide spaces to bearish speculation with the possibility of going to test the lows of the last three months in the $190 area, seen in mid-July.