Despite 2019 being a long and painful bear market, among all the crypto-assets, Bitcoin was the best performer of the year, gaining 95% over the year with volatility ranging from $3,500 to $13,500. It surpassed Gold that rose 19%, the S&P 500 29% and silver 15.6%. On the 1st of January 2019, Bitcoin was trading at $3776 and it closed above $7200 on December 31st.
Journey to 10K
2020 has seen the world’s largest cryptocurrency push even further as it rose more than 30% to briefly surpass the $10,000 mark on February 9. This was the first time bitcoin touch these levels since October last year. According to data from Coinbase exchange, shortly after 3:00 a.m. UTC, BTC/USD moved to $10,000.
The break above $10,000 was short-lived, as soon after touching $10,200, Bitcoin price fell over $250 in a matter of minutes to settle in the $9700 region. This was disappointing for bitcoin enthusiasts. On this matter, derivatives trader John Wick tweeted earlier on Tuesday:
“Disheartening to see $BTC reject us not even 24 hours after breaking 10k. At the same time the strength of this push has weakened since $9650. Signs of slowing momentum. Let’s hope we don’t turn 10k into resistance when we finally are able to find our way back to 10k.”
Now, the price of bitcoin is back over $10,000 with BTC trading at $10,163 at press time with dominance at 63.3%. That tear back into five-figure price territory happened almost exactly at 10:30 a.m. EST today. The move came right after the formation of a descending wedge pattern which is generally a bullish indication of the price about to break upward.
The recent push across 10K was predicted by one crypto commentator dubbed CryptoHamster, who tweeted:
As Bitcoin continues to gain momentum, crypto analysts are becoming more and more bullish about the future of the cryptocurrency. PlanB, the creator of the stock-to-flow Bitcoin price forecasting tool, predicts that the upcoming block reward halving in May would kick off the “bull run” sending the cryptocurrency to $100,000 before December 2021.
Tom Lee of Fundstrat Global Advisors claims that the price of bitcoin could witness a rally to $40,000 this year. Lee thinks that the price action will be driven by global events such as the coronavirus outbreak as well as bullish technical signals.
Bitcoin is often considered a potential safe haven and hedge against issues in the global economy. Fears of a recession and the outbreak of the coronavirus have led to investors getting scared off from traditional assets.
Institutional investment boost
Many analysts believe that the rally across 10k was the result of high demand in the DeFi space. The growth of traditional forms of trading entering the Bitcoin space has often been associated with a maturing market. Institutional investment platforms like Bakkt and CME have been performing really well with CME passing $100 billion in total notional value traded since 2017 launch.
On the other hand, Bitcoin continues to gain more popularity as Google search data shows a 33 percent increase in Bitcoin-related searches, which is another bullish indication.