Bitcoin is currently caught in an intense updraft that has allowed its price to gain some serious momentum throughout the past couple of weeks.
This ongoing rally first began when news broke regarding Square purchasing $50 million worth of Bitcoin to hold on their balance sheets as a reserve asset.
Shortly thereafter, PayPal also announced its foray into the crypto market, introducing a new service that allows users to buy, sell, and pay for items using Bitcoin, Ethereum, and a few other digital assets.
This corporate adoption shifted investor sentiment and helped catalyze some serious momentum that isn’t showing any signs of slowing down anytime soon.
Bitcoin’s price rocketed to fresh 2020 highs of $13,700 earlier today, at which point it found some intense selling pressure that slowed its ascent and caused it to see a slight retrace.
It is now consolidating as bulls attempt to muster up enough support to catalyze a move up towards $14,000. The resistance at this level is quite intense.
One crypto-focused economist believes that BTC could extend this momentum past this level and reach the $15,000 region before seeing a strong selloff. He notes that this potential move could coincide closely with the upcoming presidential election.
Bitcoin Rallies to New Highs as Bulls Take Aim at $14,000
At the time of writing, Bitcoin is trading up over 4% at its current price of $13,600. This is a fresh yearly high for the cryptocurrency and only marks a slight decline from its intra-rally highs of nearly $13,700 set at the peak of this move.
Where the crypto trends next will depend largely on its reaction to $14,000, as this has long been a heavy resistance level that may continue slowing its growth.
If the crypto can shatter this level and rally higher, a move to all-time highs could be on the table.
Economist: BTC Could Rally Past $15,000 Before Seeing an Election-Induced Selloff
One possibility mused by a crypto-focused economist is that Bitcoin will rally all the way up to the mid-$15,000 level before seeing a sharp selloff that coincides with the upcoming election.
He spoke about this in a recent tweet, putting forth a chart showing a potential downside target within the $12,000 region.
“This would be great price action. Such a move should heat up the market, offering a great spot to take profits (or maybe even short if we see that prior to the elections).”
Image Courtesy of Alex Krüger. Source: BTCUSD on TradingView.
It remains unclear whether Bitcoin will see a drop this intense anytime soon, but bulls do appear to be in full control of the asset for the time being.
Featured image from Unsplash. Charts from TradingView.
by Cole Petersen on October 28, 2020 at 07:30AM
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