After falling to the lowest point in the price index during March 2020, and remaining at a low price consistently for another few months, Bitcoin (BTC) began to show an improvement in the BTC Price Index.
The BTC hit a high of $11,964.21 on September, 2. However, this peak was short-lived when the price of BTC suffered a $900 drop. This price drop in the past couple of days has been specifically frightening for the beginner retail traders, who just began to invest, however, the long term cryptocurrency investors seem unbothered by the fluctuation.
Bitcoin Price Breaks a Temporary $11,000
On September 17, after more than two weeks of resistance, the Bitcoin Price Index reentered the $11,000 threshold. According to the ‘Coindesk’ Price Index of BTC, the leading crypto coin remained beyond the $11000 for a very short while before returning to the $10,000 range the next day. The BTC Price Index has remained in the range of $10,000 since September 18.
Bitcoin Performance Against Other Cryptocurrencies
BTC has dominated the entire crypto-economy, as the measuring metric of the bitcoin’s market capitalization as compared with the estimates of the rest of the crypto market economy is over 58%. Thanks to the automated trading bots with great degree of accuracy and promising profits. bitcoin prime app is one the latest automated bitcoin trading bot, which due to its specialized algorithm and high efficiency, allows investors greater range of profts. Bitcoin has climbed up 6% during the last week and 19% for the last 3-month period.
Ethereum (ETH), which is the second largest cryptocurrency platform after the BTC, is trading for $385 per coin and is down 0.7% for the last week. It is, however, still up 68% for the last 3-month period. Another popular crypto coin, Bitcoin cash (BCH) has been currently trading for $233 per Bitcoin Cash, and is up 1.2% this week and 1.14% for the 3-months span.
Unexpectedly, Kwambria (KAT) was the crypto coin with the largest gains on Saturday, September 19. It climbed 50% during the last 24 hours and sashimi (SASHIMI) witnessed a 42% gain today. Pillar (PLR) fell by 27% in value, whereas the least performing coin amongst all was Swerve (SWRV) which suffered a loss of 36% in value.
Cryptoquant Bitcoin Analysis
According to the blockchain Analysts of Cryptoquant, an exclusive data platform firm for professional crypto traders, despite the increase of $11,000 the BTC Whales (individuals and/or groups holding large amounts of Bitcoins) remained hesitant upon selling the bitcoins. This approach can be influenced by the exchange rate fluctuation of BTC, according to Cryptoquant’s CEO, Ki Young Ju.
Increasing Investment in BTC
Microstrategy, a business intelligence and cloud services tech giant, which recently invested $175 million, after purchasing 17,000 bitcoins within 72 hours. The company announced that it has purchased a total of 38,250 BTC at an aggregate price of $425 million. The first purchase was announced on Aug. 11 for 21,454 bitcoins at an aggregate price of $250 million. The company then disclosed on Sept. 14 that it had purchased an additional 16,796 bitcoins at an aggregate price of $175 million.
Conclusion
Investments in the bitcoins have been consistent, and long term investors have remained bullish about maintaining their BTC reserves despite fluctuations and inconsistencies in the BTC prices. In the short-term, this immediate urge to purchase the bitcoins may be influenced by the open interest on Bitcoin (BTC) options, which is just 5% short of their all-time high, but nearly half of this amount will be terminated in the upcoming September expiry. Approximately 47% of the Bitcoin options are to expire next Friday, meaning BTC could be on the verge of a trend defining move.
However, this short-term uncertainty and variation in BTC is overshadowed by the consistency in the long term. The research conducted by a Crypto Analyst Firm, ‘PlanB’, indicated a price floor of $6,700 and showed that according to the 200-week moving average, the value of the coin would increase by $200-a-month, in the long run.
PlanB also conducted an online survey concerning the future of the bitcoin price trends. The survey attracted 14,000 respondents. Results indicated that a vast majority of 59.1% of the respondents was bullish about Bitcoin over the next year, and also preferred BTC over other cryptocurrencies. In total, 92.8% of respondents were optimistic about the BTC/USD.