11.08.202012:16 Forex Analysis & Reviews: Bitcoin has risen in price by 220%, now what's next?

The last month of summer turned out to be hot for the main cryptocurrency: it broke another record, soaring by 220% in the current five months. Experts fear that price swings of an incredible scale can lead to an imbalance of the BTC/USD pair.

The price expansion of the leading cryptocurrency is striking: it almost reached the bottom in March this year, dropping to $ 3,800, and exceeded twice the psychologically important threshold of $ 12,000 already in August. However, BTC could not hold on to this top and surrendered its positions at the beginning of this week. On Tuesday, August 11, Bitcoin is trading in the $ 11,690- $ 11,700 range, aiming to go beyond that range.

The crypto market is watching the dynamics of the leading digital asset with anticipating breath. Experts of Binance Research explain the sharp rise of the cryptocurrency for a number of reasons, including a significant increase in transactions. Note that at the end of July, there was a sudden and significant (by 50% of the usual) excess of the volume of deposits and withdrawals on crypto exchanges.

Analysts believe that the next reason for the rise in price of the first cryptocurrency is a noticeable influx of DeFi investors into the PTS. At the moment, experts believe that the popularity of the industry of decentralized means of payment is at its peak.

Binance Research experts consider the general positive mood in the crypto market as the third factor explaining the growth of the leading virtual asset. The optimism was added by statements by the heads of large banks in the United States regarding the provision of depository services for digital currencies. An additional positive factor was the perception of bitcoin as a possible defensive asset. It can be recalled that such moods strengthened during the COVID-19 pandemic, and now they continue amid fears about a depreciation of the USD and a reduction in real rates.

According to preliminary estimates, the main cryptocurrency has soared by 70% since the beginning of this year. Experts from Trading View Inc. believe that at present, the PTS has "caught a wave" and moved into an upward spiral. Experts consider the level of support for bitcoin at $11770. According to the forecasts of Trading View Inc., the leading virtual currency can test the level of $12400 in the coming days, rewriting the annual maximum. If the situation worsens, profit-taking is not excluded, after which the sun will decline to $10700.

Most analysts are optimistic about the near term prospects for Bitcoin. Some of them expect the leading asset to rise to $ 14,000, but other predictions look less plausible. For example, Dan Morehead, the head of Pantera Capital, does not rule out its explosive growth - up to $ 115,000 by August 2021. This assumption is based on observations of the MTS course after two previous halvings. It should be noted that after them, the price of the virtual asset continued to grow by inertia for 440 days after the miners' reward was cut.

However, other forecasts based on the dynamics of bitcoin in relation to the US currency are considered more realistic. It can be recalled that the key digital asset is becoming more expensive in relation to USD in impulses, the size of which ranges from $ 1500 to $ 2500. Currently, BTC buyers are targeting the $ 13,200 mark with the possibility of breaking the $ 14,600 barrier.

According to experts, bitcoin has a large room for growth, but it is moving towards its goal in small steps. Passing level after level, the main digital asset overcomes new barriers to conquer new heights. Nevertheless, cryptocurrency market experts are confident in its victory in the medium and long term.