The largest cryptocurrency was able to find a foothold and now we will have to resume the rally. This opinion is shared by many traders and experts.
One of the supporters of this point of view is an analyst under the nickname Big Chonis. He believes that a level just above $ 8,000 will be a kind of starting point for the resumption of strong growth.
$ BTC – nice way to start the week #bitcoin …
Retest last weeks lows and break it by $ 10bucks, retouch MA100 and tweezer bounce … let's see if she can build off this momentum … pic.twitter.com/SbRjuRlqwc
– Big Chonis⚔️Flux Trading Group🚀 (@BigChonis) September 30, 2019
The first cryptocurrency really received little support during the Asian trading session. Investors from the countries of the Asia-Pacific region have traditionally been important drivers of a surge in alternative assets, including bitcoin .
On Tuesday, October 1, the BTC rate rose to $ 8463 after falling below $ 8000. According to analyst Big Chonis, the prerequisites for a "bullish reversal" are now forming. A jerk of up to $ 10,000 immediately, of course, is unlikely, but a phased strengthening is possible already during today's session.
The optimists camp has recently been replenished by experts at the research division of the cryptocurrency exchange Binance .
They published a report in which they predicted that October could be a very good month for all digital currencies, and Bitcoin will not only hold fundamental positions, but also show us more impressive growth.
One of Germany's largest banks predicts Bitcoin exchange rate growth to $ 90,000
The German bank Bayerische Landesbank (BayernLB) this Tuesday presented a new analytical paper in which it compared the policy of issuing bitcoin with the release of various precious metals. According to the authors, the ratio of already issued assets to newly entering the market (stock-to-flow ratio or S2F) can serve as a clear indicator for determining their “hardness".
Bitcoin's emission value is not subject to change, which makes cryptocurrencies look like gold, BayernLB notes. At the same time, gold has earned a high S2F ratio for thousands of years of its existence, while it was originally laid down in the bitcoin code. The authors declare that the substantial superiority of the existing offer over the new issue of an asset is the preferred characteristic for a cash exchange commodity.
For example, palladium has a low S2F ratio, since in its case the available offer is small relative to the new release. Thus, he cannot fulfill the function of money, since an existing proposal can easily be diluted with a new one.
According to the authors, the fact that bitcoin is mostly in demand as a monetary asset is an advantage for analysis, as it makes the S2F model more accurate and does not cause sudden changes in demand from market participants that could use it for other purposes.
Analysts also mention two upcoming halving of the largest cryptocurrency, predicting that as a result of these events, the S2F ratio of bitcoin will fall below gold levels:
“If in May 2020, the S2F ratio of bitcoin fits into this model, a dizzying price of $ 90,000 is formed. This will also mean that the upcoming halving was hardly reflected in the current bitcoin price of about $ 8,000 (according to the model, the price should be about $ 7,500 ) ".
BayernLB was founded in 1972 and is the seventh largest bank in Germany, controlling assets totaling € 220 billion.
Publication date 10/02/2019
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