Over a week ago, it was reported that the price of bitcoin had successfully broken above $11,000 per token. It was not the first time that the token had hit this price but it was significant nevertheless.
The token, like many other assets, had been negatively impacted after the COVID-19 outbreak and the $11,00 figure represented a significant improvement on the token price.
Furthermore, the $11,000 represented a key resistance figure that if met, could indicate an incoming price rally for bitcoin. The question following this was whether the token would be able to maintain this momentum and move towards a price rally or if the spike would be short-lived.
Bitcoin at $11,000
Over a week after meeting the resistance point, bitcoin has not only stayed above $11,000 but has also made some gains at the same time.
As of October 9, 2020, the price of BTC was recorded at $11,301.57 and as of October 18, 2020, is at $11, 436.48. During the 9 days, the lowest that the price even fell to was $11,326.25.
These figures go to show that the price spike was not only significant but consistent as well.
This further strengthens the belief that bitcoin will see a major price rally in the next few months and may even reach the next resistance point of $13,000.
According to popular crypto commentator @cryptomichNL, $12,000 is the next crucial price point before a bull run kicks in and the token must hold strong if it is to achieve this.
Furthermore, he has said that a weaker dollar value will aid the gains in the bitcoin price. The reason for this, he says, is that historically, the weakening of the dollar leads to a strengthening of ‘safe haven’ assets of which bitcoin is among.
So far, the factors that have affected the change in bitcoin price have been the COVID-19 outbreak, the state of the US dollar, and announcements from companies such as PayPal regarding their dealings with cryptocurrency.
However, the last few weeks have seen a scandal at a major exchange OKEx, where it was revealed that one of their wallet custodians is out of contact and as such withdrawals have been frozen, leading to slight pessimism in the market.
If the bitcoin price can hold despite these, then we might very well be on our way to the illustrious bull run.