When Bitcoin dropped below the $20K support line, many doomsayers immediately started talking about the possible crash. Filbfilb, the creator of DecenTrade used by many professional traders, has a very bleak scenario for all crypto enthusiasts. He predicts that the asset can dip to $10K. The opinion is controversial, but this analyst predicted the 2018 bottom quite well. However, it seems that the current situation is slightly different.
After reaching $18.54K on September 7, Bitcoin has been moving sideways for a while. The new Bull push occurred on Friday when the token managed to gain 7% and reached $20.8K by the end of the trading day. During this period, ETH also gained 5% and reached a new $1.7K peak (the highest price after two weeks of struggling to break through the $1.6K barrier).
Bulls continued their push and managed to temporarily break through the $21K resistance level, but had to step back briefly. On Saturday, the price reached $21.1K and dropped back to $20.9K right after. To many, the series of events was quite surprising, but some analysts chimed in to say that this surge is likely caused by the weakening of the US dollar which dropped sharply against the euro. While the price quickly corrected, the renewed optimism from crypto investors kept gains steady across the two days.
The rally may be temporary. The global recession is still hurting all sectors badly causing investors to panic and move their capital rapidly in attempts to hedge against risks that appear daily. Those who are sure that the US dollar has what it needs to stabilize and withstand inflation continue putting their faith in fiat. However, many are seeing this moment as a perfect opportunity to hedge against fiat currencies by investing in crypto.
Note that many other factors are affecting the whole crypto market. The upcoming Ethereum merger, the anticipation for the Vasil hard fork of the Cardano network, and the uncertainty in the global economy shift prices dramatically. However, this Bull push is certainly a good sign for many people who are holding BTC at the moment.