This past week Bitcoin (BTC) rallied to a high of $13880, the highest its reached in value since late 2017. Some investors believe the pioneering crypto could be attempting to reach $20,000 son.
However, this notion was short lived after some investors trading large amounts of BTC (whales) sold for profits. The price quickly dropped below $12000 and later sell-off continued. Bitcoin is currently trading around $11,200.
What is the true value?
Debate of the ‘fair value’ of bitcoin still continues today, and analysts have used various methods in their calculations. Tracy Alloway, Bloomberg analyst and creator of a bitcoin price index, believes that current levels of BTC/USD are fair and just.
“Bitcoin remains fairly valued according to my avocado-based pricing model, even after rising past $11,000,” Alloway wrote.
Bitcoin remains fairly valued according to my avocado-based pricing model, even after rising past $11,000. pic.twitter.com/j4NLDSPpXC
— Tracy Alloway (@tracyalloway) June 25, 2019
As the US markets lead to the Federal Reserve meet June 18th-19th, BTC was trading around $9200. The market priced in the Feds rather ‘dovish’ position amid trade war tensions and the market rallied.Late into that weekend, BTC broke resistance around $11,200 and reached new highs.
Expectation vs Reality
Any drops below current and/or previous support levels will be short lived due to heavy bullish sentiment in the market. Investor confidence rose due to the uncertainty around global markets, specifically with the US-China trade war.
Our current information tells us that only time can truly reveal where the BTC price will be. But, considering we have already reached the levels unseen since 2017 suggest we may be knocking the door of $20,000 very soon.