Bitcoin Looks Set to Continue

August 6, 2020, by Maayan
BTC has rallied with other commodities on a weaker dollar and the price should see further gains.

BTC Closes Out a Strong Month in July

Bitcoin’s July rally has culminated in a strong technical close for the month above the stubborn $10,000 level. The move higher in BTC has been fuelled by U.S. dollar weakness, which has led to gains in other value stores, such as gold and silver.

Bitcoin closed the month around the $11,450 mark and this should ensure that we see an imminent test of the $12,000 level. The real resistance is at $14,000, which was the high in the July 2019 rally, and if the price can get above there then a test of the $20,000 all-time highs is possible.

The U.S. dollar has been falling on political instability due to the upcoming November election. Both sides have very different outlooks on the path for the United States and this uncertainty is leading investors to pull money out of the country. Before the Coronavirus hit the U.S. economy was seen as a safe haven with strong GDP, while Europe and China were struggling. This dynamic has been turned on its head now and investors are starting to re-evaluate the outlook for many of the world’s economies.  

Litecoin Powers Through the $50 Level

We mentioned in recent articles that Litecoin’s ability to hold the $40.00 level gave hope for a rally to the $50.00 level once more and the coin has surged with the crypto market to close the month near $60.00.

Litecoin’s next real target will be the $80.00 resistance level and if BTC can continue seeing new highs then LTC could attempt a move to the highs of July 2019, which was around the $140.00 level. LTC was the leader of the 2019 rally with gains of over 300% from the $30.00 price to over $140.00. The market cap of the Litecoin project has risen by 100% from the June lows and this will be a positive as the development teams work on coming upgrades to the LTC blockchain.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.