Wednesday, February 8, 2023

Bitcoin Price Inches Closer to $2000 in Unstoppable Market Rally

Bitcoin Price Inches Closer to $2000 in Unstoppable Market Rally

The bitcoin price rocket ship is moving full steam ahead towards the moon. In another jump forward, the digital currency has surpassed US $1900, making a rise to $2000 imminent — with the possibility of a further rally to $2600.

Also read: Ryan X. Charles Ditches Bitcoin for Litecoin, Citing Block Size Issues

Bitcoin Price on a Collision Course With $2600

The bitcoin first broke $1900 on Coinbase during the evening of May 18, and several other exchanges soon followed suit. Now, at press time on May 19, bitcoin stands at $1966 on Coinbase and $1947 on Bitstamp.

Bitcoin Price BitKan
The bitcoin price broke $1900 on the evening of May 18

According to our technical bitcoin price analysis for this week, however, traders can expect to run into some resistance at $2000 — which currently acts as a psychological barrier. Therefore, it’s possible that we could see some sideways activity in the $1900s as traders test the upper resistance.

If the markets break that $2000 resistance, though, technical projections show our next stop at an astronomical $2600.

A Bull Rally Made Anew

This push to $1900 marks a renewal of the ongoing rally, which seemed to have slowed down in recent days.

Between May 15 and 16, the price fell from $1800 back into the $1600s. From there, the markets pushed bitcoin back into the $1700s, eventually going back to the $1800s.

However, during May 17, the price struggled to stay above $1800, repeatedly falling back down into the $1790s. Judging from that activity, it looked like the rally had slowed down considerably, possibly suggesting that the price entered a holding pattern in the $1700-$1800 range.

The slowdown in the rally, combined with the hit Bitcoin’s reputation took in the media during last week’s WannaCry catastrophe, made a postponement of the $2000 rally look very likely.

But we couldn’t have been more wrong, obviously.

Bitcoin Still Has a Long Way to Go

The rapid rise to $1900 and beyond is exciting for sure, but the underlying consequences of the spike remind Bitcoiners of the serious issues faced by their beloved cryptocurrency.

Because of the 1MB limit on the blockchain, the increased trading volume from the rally has caused transaction fees to skyrocket. While expected, the larger fees have left many Bitcoiners unhappy — further fueling the fire currently surrounding the Bitcoin scalability debate.

If the price continues rising, fees will get even higher, and eventually it will become impossible to get a transaction through the Bitcoin network without paying an incredibly high price to miners.

SegWit vs. Bitcoin Unlimited

bitcoin block size debateTo those in the SegWit camp, these fees do not pose a problem at all. In fact, to them, high fees are desirable as they subsidize miners and prevent them from consolidating and centralizing.

The average user doesn’t need to send transactions on-chain, SegWit supporters claim. Instead, most users can use the various second layer, off-chain solutions to send their payments quickly and cheaply.

The minds behind the opposing Bitcoin Unlimited camp disagree, however, To this faction, on-chain scalability — and the cheap, on-chain transactions that come with it — is paramount.

Without on-chain scalability, says BU proponents like Roger Ver, Bitcoin cannot serve as a global cash system that includes all facet of the world’s economy. By adopting off-chain scaling solutions, they claim, Bitcoin will become no different from the Visa or ACH networks.

And while both camps keep progress towards scalability totally deadlocked, Bitcoiners are left with no solution at all. With neither second layer options nor an increased block size currently available, users have no respite as the network gets increasingly slower. Without a solution — be it on-chain or off — Bitcoin will simply become harder to use as its value increases.

In the meantime, let’s just enjoy our ride to the moon.

Will the bitcoin price hit $2000 soon? Will we see a solution to scalability in the near future? Share your thoughts down below. 

Images via Roger Ver, Pixabay. Bitcoin price chart courtesy of BitKan. 

Disclosure: BitKan is a strategic partner of Bitsonline.

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