Reasons for the Bitcoin rally in July/August 2020!
Just last month, July 28, 2020, the Bitcoin price broke the $ 11,000 mark again. This rally was triggered by strong technical indicators and numerous bullish news.
If the high in June 2019 at around USD 13,800 will be broken too, Bitcoin could soon head back to the all-time high of USD 20,000.
In this article, we will go into more detail about the reasons for the rapid rise in the price of Bitcoin in July/August 2020.
In the past few months, the Bitcoin course has struggled to break the $ 10,000 mark more often. On Monday, July 27th, 2020 it was finally time again and the Bitcoin price rose in the range between USD 10,000 - USD 10,500. In the evening there was the long-awaited breakout above $ 11,000, with a daily high of $ 11,422.
The last time the Bitcoin price reached this level was in August last year.
What are the reasons behind the sudden surge in Bitcoin price above $ 11,000?
1. Technical bullish indicators
Many of the cryptocurrency experts are already predicting a price rally, as the technical indicators for a bullish scenario have increased in number over the past few weeks. In the end of july, Bitcoin has already broken through the resistance at USD 9,500 and USD 9,700, preparing the breakout for the psychologically very important USD 10,000 mark.
Long-term resistance at $ 10,500 is arguably the most important technical factor behind the rally above $ 11,000. This resistance was already established 10 months ago and with the breach of this mark, Bitcoin is positioning itself for a new bull run towards the all-time high.
In the moment, 30. August 2020, the Bitcoin price is around 11,600 $.
2. Positive news regarding Bitcoin in July
There has been a lot of positive news for Bitcoin lately. For example, the American Office of the Comptroller of the Currency (OCC) issued a notice that made it clear that all approved banks in the USA are allowed to offer custody services for cryptocurrencies. If banks invest only 1% of their assets in cryptocurrencies, the Bitcoin price could more than double as a result, explained Messari researcher Ryan Watkins.
Another bullish news came from payment giant VISA, announcing that the company released a roadmap that would provide an interface for Bitcoin, Ethereum and Ripple payments. With this interface, users can connect their Bitcoin or Ethereum wallet to their Visa card and thus make payments using cryptocurrencies.
3. The Bitcoin Block Halving in May 2020
Bitcoin halving is also likely to be an important factor in the latest Bitcoin price rally, which took place in May 2020.
According to CNF, the selling pressure from Bitcoin miners has decreased as decisively since the Bitcoin halving in May 2020 as it was after the last Bitcoin block halving in 2016. As a result of the Bitcoin halving in 2016, the Bitcoin price rose by over 3,000% within 525 days after the halving.
We stay tuned!