It feels a bit like déjà vu, doesn’t it? The recent rally past the $11,000 mark and the bullish continuation of bitcoin we are seeing right now all led to BTC price hitting $12,000. However, the $13K resistance point still holds, and BTC price is now hovering in the $10,500-$12,000 range.
So, is the $13K resistance too strong to break? The market is highly optimistic, but optimism alone is not enough to push the price further. There are, however, some interesting fundamentals that may cause bitcoin to break the $13K mark.
A Strong Correlation with Gold
Bitcoin price is not the only price that has shown a bullish trend these past few weeks. Gold, another popular commodity among investors, is also showing similar signs, breaking records and hitting new highs on a regular basis.
The current movement of bitcoin is deeply affected by the price of gold breaking the $2,000 barrier. Experts weren’t sure that the gold price could exceed that virtual limit, but the trend is still very positive even after gold reached $2,065 on August 6th.
Since then, bitcoin has hit $12,000 twice, only for the price to fell back by $1,200, a common market correction. This is a sign that the resistance level is holding strong, but it may not hold strong for much longer.
$14K and $20K Rallies
One thing to note about the resistance point at $13K is how it is very close to the $14K and $20K gap in the commodity market. Breaking the $12K barrier could mean a quick rally to $14K, followed by a swift break to $20K soon after.
That’s the all-time high for bitcoin , and the current market has the momentum to reach it. Every dip in the price is immediately filled by bitcoin buyers. Technical factors surrounding the bitcoin movement are also supportive of another long rally.
Bitcoin may be holding right now, but all signs point towards the cryptocurrency breaking the $13K mark within the next couple of weeks. Meanwhile, the market maintains its liquidity, dropping only 3 points since the pre-bull market.
Consolidation and Street Price
The one thing to anticipate if you are investing in bitcoin is market consolidation. While the holding pattern is a sign of the market gathering momentum for another sprint, consolidation – followed by a couple of corrections – is still a possibility.
To keep an eye on the bigger picture, it is a good idea to also monitor the peer-to-peer bitcoin price. The peer-to-peer bitcoin price represents the street price of bitcoin more accurately, and you can now access the prices using Chaingers.io and its real-time conversion tool.
Speaking of that conversion tool, you can also gain information about bitcoin street prices based on completed trades or active offers, with the latter being more accurate when used as a benchmark of market anticipation.
That brings us back to the original question: can bitcoin top the 13K mark? It is not about if it can, but when it can. Based on the fundamentals we covered in this article, experts believe that bitcoin will cross the $13K line in the coming weeks.