The Bitcoin (BTC) price has had an interesting year, from the significant dive it took following the COVID-19 outbreak to the rebound it has seen in the last few weeks. In September, the bitcoin price was hovering around $10,500 per token and there was discussion about whether or not it would maintain the momentum.
As of October 9, 2020, the price of bitcoin has been reported as just over $11,000. This represents not just a 6.2% increase since October 2, 2020, but also the breaking of a new resistance level. It also represents a surprising performance by the token, as some analysts had predicted a major pullback.
Bitcoin Price Holds Strong
The $10,5000 figure is a particularly important one with regards to the price of bitcoin. First, it is a big resistance area for BTC, and being able to break and remain above it for a significant amount of time is a positive sign.
It has also been reported that the $10,500 figure often leads to the formation of whale clusters. Whales refer to crypto holders to accumulate large amounts of tokens, enough to make an impact in the market.
The fact that whale activities spike, when the bitcoin price is around this level, means that it is an attractive price point to accumulate. Now that the price has broken above $11,000, some crypto experts predict that $13,000 is the next price point to aim towards.
According to “Salsa Tekila,” a popular crypto trader, $13,000 is the next point towards a large price rally. If the price can both remain above $11,000 and then reach $13,000, the price and reach and surpass the previous all-time high of around $20,000.
Recent Factors Affecting the Bitcoin Price
A few recent events have been credited as initially affecting the momentum of the bitcoin price. These include both the investigation launched by the United States Commodities and Futures Trading Commission and the Department of Justice into BitMEX and its executives as well as the announcement of US President Donald Trump contracting the COVID-19 virus.
However, these negative factors were counteracted by a $50 million bitcoin purchase and the decline of the dollar. Furthermore, some have even argued that certain instances, such as the CTFC investigation into BitMEX, as it will help biuld public confidence in the industry.