Why $14,000 is a key price benchmark for Bitcoin
In the last few weeks, the price of Bitcoin reached new highs, and investors who bought the main cryptocurrency at the price of $9,000 can already see a high return, as the BTC price reached $12,000. Analysts believe that Bitcoin will soon overcome the $14,000 mark, and if so, a new wave of large investors will enter the market. Some investors say they prefer Bitcoin over gold.
David Puelle, a well-known Bitcoin analyst, believes that Bitcoin is in a situation where overcoming the level of $14,000 will be a decisive moment to reach a stable growth trajectory. Last week, the oldest cryptocurrency was below $12,000 for most of the time, and never updated its annual high, which was around $12,100.
Puelle analyzed and concluded that the majority of Bitcoin purchases have been made in the last two months, when the price of the cryptocurrency fluctuated in the corridor with the boundaries of $9,000 and $12,000. We are talking about a game of “whales”, that is, large buyers of Bitcoin.
If you want to find more details about the course of Bitcoin and how the main cryptocurrency could reach the $14,000 mark, download for free our companion app, Born2Invest. Read the most important financial headlines in the crypto sector and not only with the best online aggregator.
Investors who bought Bitcoin at the level of $9,000 are already on the winners side
Those investors, who bought Bitcoin at the level of about $9,000, see already now a high return on their investment. Those who buy it at current prices find themselves in a situation where they do not see any income yet. As the volume of purchases grows, both categories of buyers will be interested in “bullish” market movement, as a result of which the price of Bitcoin will go to the level of $14,000. As a result, profit taking will start, and Bitcoin may go to the level of $10,000 on this background.
However, if Bitcoin overcomes $14,000, then the market will again enter the large buyers who want to see an update of the historical maximum price of this asset this year.
Famous Bitcoin billionaire Mike Novograts also sees the potential of Bitcoin to go beyond the level of $20,085, which the cryptocurrency took last time in December 2017. Novograts noted:
“I like Bitcoin more than gold, simply because the cryptocurrency is a rarer asset than the precious metal, which means that cryptocurrencies are harder to buy. So, the total estimate of all Bitcoins is currently $220 billion. Gold has a similar figure exceeding $10 trillion. And although it will take time for the cryptocurrency to reach that estimate, sooner or later it will happen.”
Bitcoin is constantly gaining popularity among investors
The cryptocurrency’s flagship asset, Bitcoin, has bounced significantly from its year high, which was fixed at $ 12,118 in the week that ended on Sunday, August 9th. Together with the fall in the price of a troy ounce of gold from $2,070 to $1,920, Bitcoin tested the level of $ 11,210 at the beginning of August 12th, following the dynamics of the world’s key precious metal.
Meanwhile, if gold has yet to find the strength to resume its growth, Bitcoin added $200, demonstrating that it is fundamentally gaining popularity among investors. Raoul Pal, founder of Global Macro Investor and Real Vision Group, is confident that Bitcoin is still at the beginning of its new bullish cycle.
He noted that “a very strong rise in the price of cryptocurrency is expected, and this will happen as classical companies begin to act like ordinary investors-individuals in Bitcoin, realizing that the cryptocurrency looks undervalued, and therefore interesting to invest.”
(Featured image by Aleksi Räisä via Unsplash)
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First published in CLICK CHAIN, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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