Four Drivers Will Push Bitcoin Price to 20,000 USD | Crypto Markets

Hi, everyone, I'm Giovanni, and today with
us senior market analyst Mati Greenspan with the latest market updates. So, Mati, can you give us an update about
the last events in the markets? So bitcoin crossed $10,000 over the weekend. Even popped its head above $11,000
briefly at two different points. At the moment we've got a nice
ascending triangle over here. A lot of momentum right now. And what about other altcoins
like litecoin, ethereum? Did you see any of these altcoins
leading the last rally? Bitcoin is firmly in control of this rally. It's up about 10% on the week whereas some
of the other altcoins, most of them are around 3%, maybe 4%.

NEO is also flying, I don't know about that
it's 28%, but I wouldn't say that NEO is really leading the market. Definitely all of the focus from the mainstream
media and from crypto enthusiasts is around bitcoin. What's the difference between the current
pattern of bitcoin compared to the one that we observed during the 2017 bubble? That is an excellent question, Giovanni. And what I can say is that the first time
Bitcoin rose above $10,000 per coin back in late 2017. It was amidst kind of FOMO driven rally and
what I can say is that this time around, $10,000 more reflects the true value and it seems
a lot more sustainable given current adoption rates. Here we can see the transaction rate in bitcoin
in 2017 it did spike up to about 4.5 transactions per second, but it didn't stay
there for very long.

That was based on the speculation and hype,
there was a big spike in the transaction rate. Actually, what we can see is throughout 2017,
so since about January the transaction rate has been largely remained above 3.5 transactions
per second, so we can see these days there's a lot more usage of the blockchain and that
basically contributes to its valuation. We can also look at the level of activity
on LocalBitcoins which is a peer-to-peer trading site which also reflects real world usage
much more than we would see United exchanges which is more speculative. And what will notice here is that since the
overall volume at LocalBitcoins rose above $50 million around September 2017 which is
about here and it actually has not gone significantly below that since.

So meaning that all that time from then until
now we have a lot more activity on the blockchain. So this is a rapidly growing industry. 2017 brought us awareness, basically during
that time the entire world was just kind of figuring out what bitcoin is
and what it's all about. And today ever since then we have that awareness
and this is basically, this rally is driven by more fundamentals. Can you tell me something
about the price levels? Yes, so overall, I mean it's very clear that
the move above $10,000 which was a strong psychological resistance level was a big driver. And now we can see very clearly the upward
trajectory of this market.

So if we start drawing our support and resistance
levels we'll see that we're just at the top of this channel at the moment. So if we draw our support here along the bottom. And then our resistance here along the top,
and we can notice that we're quite at the top of this channel which would normally mean
that we could be due for a pullback if we do see a pullback. We can probably expect that $10,000 level
gets broken again down to the downside, possibly testing that $9,000 level
which was a resistance in early June. But it doesn't have to, I mean right now like
I said we have an ascending triangle on the short term we could very well get a break
to the upside, so we'll have to wait and see. What I do want to note is that break above
$10,000 happened on strong volume we can see in Messari crypto the Real 10 across the ten
biggest exchanges is trading at $1.6 billion.

That's a big number. That's more than double what it was a week
ago, almost triple. So definitely this move
is coming with strong volume. Regarding a recent article published by Cointelegraph
in which there are four reasons why this time bitcoin can break the $20,000 all-time highs. So the reasons included in the article are
institutional demand as opposed to the retail back in 2017 and much better network fundamentals
and macroeconomic problems within the fiat world. So do you agree with this kind of analysis? 100% I agree. And actually, I'll go you one further. About a week ago I posted a poll on my Twitter
account and those were the four options that I gave to people. So not only are those the main drivers, but
we can also see kind of what people are thinking of those main drivers moving the price more. So, first of all, institutional investors,
technicals and momentum, greater adoption and then the macroeconomic picture. It seems that most of the respondents on this
poll were saying that institutional investment, the speculation that larger players are coming
into the market: Facebook, we're talking about Bakkt, we're talking about Fidelity, we're
talking about in Japan they have Line which is a big messaging app over there which is
set to open their own crypto exchange.

So, we have a lot of excitement that larger
players are about to enter the market, but overall I would say that that article is spot
on, those are in conjunction the four main drivers. Thanks a lot, Mati, see you next week. Thank you very much and have an awesome day. And as always guys, don't forget to subscribe
to our channel to get more content on the latest market updates. Hi, guys, as you might know, Cointelegraph
has its own merch store, and right now we have a special offer for all of our subscribers. Use the promocode – HODLERSDIGEST30 to get
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