The Bitcoin price is breaking the 10,000 US dollar mark and the community sees these two reasons for the rapid increase.
Bitcoin’s breakthrough into the five-digit range occurred in the early morning hours of February 9th. Many analysts expected the price to rise to over $10,000 as early as 10 days ago, when BTC broke out of a declining trend channel and crossed the 200-day average. The last time Bitcoin rose above $10,000 was in October 2019, albeit only for a very short time.
One reason for the positive market sentiment could be the technical indicator called the Ichimoku Cloud, which recently turned green, indicating a long term uptrend. In the past, the indicator has been able to correctly determine the trend direction several times.
Bitcoin Halving as a driving factor
Another reason for today’s breakthrough could be the upcoming Bitcoin Halving Event in May 2020, which will halve the number of Bitcoins issued to miners. There have already been two halvings since the introduction of Bitcoin in 2009. After both, the Bitcoin price has increased significantly. Numerous analysts believe that this scenario will repeat itself in May. A debate has arisen within the community as to whether the halving is already priced in or not.
Shortly after Bitcoin reached $10,000, Anthony Pompliano, co-founder of the Bitcoin and crypto investment group Morgan Creek Digital, reiterated that he still believes “that Bitcoin will reach $100,000 by the end of December 2021. As Decentralbox reported, Pompliano cited the Bitcoin halving as one factor in his optimistic outlook. In his tweet, he also cited “limited supply” and “rising demand” as reasons for Bitcoin’s performance.