Despite Minor Sell-Offs, Bitcoin [BTC] Inches Closer to $14K, What’s Next?

Ketaki Dixit
October 28, 2020
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
bitcoin price

Bitcoin has been riding quite high of late. Despite a rather dull performance by Ethereum and the rest of the altcoin market, Bitcoin has shown clear bullish signs and was currently up by 12.39% over the last week. It was being traded at $13,588, at the time of writing which marked a new 16-month high for the world’s largest cryptocurrency.

A crucial level of resistance for Bitcoin now stood at $14,000, a level that was last seen in the second week of January 2018. If it manages to break this mark, BTC could soar higher and target its ATH level close to $20,000. However, if this coveted level is breached, it could potentially hit $65,000-$80,000 by mid-2021. This bold price prediction was made by one of the most interesting and popular strategist, who goes by the name ‘Magic Poop Cannon’.

One of the most prominent reasons for Bitcoin’s immense success was the massive institutional foray. MicroStrategy, for one, happens to be one of the largest publicly traded business intelligence firms in the world. The company made a series of huge purchases in Bitcoin in August and September this year. With the latest gains, MicroStrategy was currently sitting on more than $89,000,000 in profit from its BTC investments.

Michael Saylor, the Chief Executive of MicroStrategy had earlier asserted that Bitcoin was a better store-of-value asset class than fiat currencies. This comment was made in the backdrop of the company purchasing 21,454 Bitcoins at an aggregate purchase price of $250 million. Noting the growing pandemic-triggered havoc and the global economy taking a plunge, Saylor had earlier stated,

“Since its inception over a decade ago, Bitcoin has emerged as a significant addition to the global financial system, with characteristics that are useful to both individuals and institutions. MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy”

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Is A Setback Ahead?

Source: Twitter, Jameson Lopp

Despite the surging price, there is one setback. Bitcoin’s hash rate which saw a drop of 45% over the past three days. This could be attributed to the end of the rainy season in China’s Sichuan province. Here, the Bitcoin miners seasonally migrate to obtain the benefits of cheap hydro-electric power primarily because rains cause an increase in water levels which, in turn, profits BTC miners’. However, the end of the rainy season essentially meant that the miners are likely to leave.

Having said that, other on-chain data of Bitcoin appeared optimistic with no signs of investor trepidation. This was further validated by the increasing number of Bitcoin whale addresses as unrealized profits recently touched its yearly highs.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Experienced writer and editor with a demonstrated history of working in the industry. Skilled in Copywriting, Web Content Writing, Copy Editing, Writing, Cryptocurrency News Writing, and News Editing.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.