Bitcoin continues to be traded near its year high. Where will the price move now?

Kraken: the bitcoin price will grow up to $34,000 very soon

The cryptocurrency price broke through the resistance that had been there for more than two and a half years and went beyond the level of $10,500. The analysts point out that bitcoin was traded higher than $11,000 for only 2.5% of time throughout its entire history.

Besides, after the volatility gets down to 15–30%, bitcoin usually goes up very quickly — up to 140%. The volatility level went down to 23% at the end of July. General economic uncertainty is another factor that pushes investors towards the demand for protective instruments. Gold and bitcoin strengthen against this background, the index of correlation between them used to reach 93%.

The BTC price will go up to $16,000

He points out that the bitcoin rate has already tested the support zone of $11,000–11,500 and is ready to enter a five-wave cycle of growth. The expert thinks the target of the move will be the $16,000–17,000 zone and the price will reach it by the beginning of October.

However, the strengthening will be followed by a rapid correction resulting in the possibility for bitcoin to go down as low as $10,500. According to the analyst, the long-term target is the level of $140,000 that the price will test in 2023.

The activity of the bitcoin network is decreasing

They point out that the number of daily active addresses (DAA) on the Bitcoin network that send and receive coins on a daily basis is getting low. Usually, a change in this parameter precedes a move in the bitcoin price.

“For example, throughout Q1 of 2019, the DAA were steadily growing way before the market started to recover. Same holds true for July 2019, when a decline in DAA preceded a decline in price”, the analysts write.

Santiment experts conclude that if the activity does not start rising by the end of the month, the BTC price is in for a considerable fall.

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