Can Bitcoin break through the previous high this year and the price stays above 14,000 US dollars?

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Since the beginning of October, Bitcoin has shown strong upward mobility, and the price has risen by nearly 30% in less than 30 days, reaching a maximum of $13,854, continuing to hit new highs for the year.

In response to currency prices, the traditional financial market has also continued to release positive news related to digital currencies within this month. From Grayscale increased its BTC holdings (the company’s total BTC holdings reached 467,281) and its Ethereum Trust was approved by the SEC, to the global payment giant PayPal’s announcement of the provision of cryptocurrency payment services, to the launch of JPM Coin for the first time by JPMorgan Chase Completion of commercial applications will all stabilize the fundamentals of Bitcoin.

Bloomberg quoted analysts as saying that Bitcoin’s rise was driven by institutions, not retail speculation. “Institutional investors’ interest is constantly rising, including PayPal’s decision to allow customers to use cryptocurrencies, and JPMorgan Chase’s JPM Coin for payment for the first time.” From the perspective of the mining market, Shang Silin pointed out that mining is a judgment of the value of Bitcoin. An important dimension, the low water period of Bitcoin caused the mining cost to rapidly increase from 8,500 US dollars to about 12,000 US dollars, which has also become a factor in promoting the rise of BTC prices. In addition, the absorption of overseas institutions and direct mining operations have almost bought most of China’s new mining machines. These have all become the underlying factors of the currency price increase.

Driven by institutional investors, the price of Bitcoin is approaching a 2019 high, and whether it can break through the $14,000 line has become an important node for judging the trend of the market in the later period. In this regard, analyst Wei Lan pointed out that there is a high probability of breaking through $14,000, or it may hit a record high.

Wei Lan explained that the global capital flooding caused by the epidemic is still continuing, and the growth of the global economy is slowing down. The epidemic has aggravated the slowdown in growth and even accelerated the local recession. Globally, especially in the United States, the possibility of recovering liquidity in the short term is relatively small. Regardless of whether Trump can be re-elected, the chance of this change is small. Therefore, the funds will be relatively abundant, and the money must be directly generated instead of being invested in industrial production.

“From the perspective of OLD MONEY entry, the situation is relatively optimistic. There are more and more channels. In addition to the GrayScale (Grayscale) for institutions, Paypal has recently begun to support it, which provides greater convenience for individual investors. More financial institutions will want to open the door, nothing more than compliance.”

Aside from external factors, Wei Lan also pointed out that the impact of BTC’s production reduction is gradually emerging. On the one hand, the supply is reduced, on the other hand, the currency price is expected to rise, and on-the-spot selling will also decrease. This positive superposition will continue to strengthen the rising expectations, and ultimately make the rise.

“From the history of the birth of BTC, now may be a very good period of BTC proliferation. After the global financial crisis in 2008, the quantitative easing currency oversupply gave birth to BTC. Today, the government represented by the United States has not only failed to release it after 2008. This year’s liquidity has added fuel to the fire. You can see from the Fed’s balance sheet. In addition, after the DeFi boom within the currency circle faded, a lot of funds have returned to BTC and concentrated again.”

Based on this, “14000 is not a real challenge point, and it may be realized soon. The real challenge point is the historical high of $20,000. This challenge will be more difficult, but it is not impossible. One or two hot events can promote To accomplish this, the hard part is whether it can truly stand up to US$20,000, rather than ruined by madness again. If you stand firmly at US$20,000, it will be the opening of a new history.”

Judging from the market trend, Ji An pointed out, “Bitcoin reached a peak of over US$13,800 this morning, a 16-month high. In terms of the overall trend, the pace of Bitcoin’s upward spiral has not changed, reaching 15,000 or even higher 18,000 within 10 months. Still a high probability.”

Ji An believes that in the short term, a spiral rise is similar to a pulse wave, with the difference between peaks and troughs. A 10% range from 13800 upwards is likely to be close to the peak area of ​​this rising wave. Compared with the purchase of 14,000 US dollars, wait for the price. Recall to the next trough, the current 11000-11500 area that can be seen is relatively profitable for buying again, and the potential net worth retracement is lower.

“In the long run, of course, there is no need to discuss short-term graphics, Bitcoin’s unique asset properties, high inflation in the outside world and Bitcoin’s anti-inflation properties. Bitcoin will give all long-term currency holders a satisfactory answer.”

It is worth noting that Alex, an economist who pays attention to encryption technology, tweeted that Bitcoin will rise all the way to around $15,000, and then there will be a sharp sell-off until the US general election. According to its released data chart, Bitcoin’s potential downside area is around $12,000.