Bitcoin (BTC) bulls are currently fighting to surpass the $14,000 price level in the market. Bitcoin has been moving higher in recent days and it has allowed investors to become certainly excited about the future of this virtual currency. Many analysts consider that if Bitcoin surpasses $14,000 we could see new highs as soon as the next year.
Bitcoin Gets Closer To $14,000
Despite being able to surpass $14,000 for a short period of time on October 30th, the virtual currency couldn’t come back above this price level. Nonetheless, bulls are keeping the largest cryptocurrency above $13,700, something that is very bullish considering it may be possible to surpass $14,000 in the next days.
If that happens, Bitcoin could rapidly move even higher considering $14,000 has been for many years strong support and resistance level. Indeed, this is the price region that Bitcoin couldn’t break in 2019 when it recovered from the bull market of 2018.
However, a consolidation at these levels would not be bad either. Indeed, it would allow bulls to gain the necessary strength to move higher in the coming months. It is clear that Bitcoin or any other asset cannot move in a straight line upwards. This has already happened in 2020 when BTC reached $20,000 and then it fell to $3,200 a year later.
There are different reasons why Bitcoin continues to move higher. First of all, there are several stimulus packages all over the world that are increasing the pressure on Bitcoin. The Eurozone, the United States and emerging countries are getting ready to handle cash to citizens and companies to reduce the effects of lockdowns and the pandemic.
Secondly, governments are printing large amounts of fiat currencies. That means that it is increasing the pressure on devaluation. Bitcoin has a fixed supply of 21 million BTC, this is something that cannot be changed and that would be one of the most valuable and attractive features of Bitcoin.
There is no government around the world or centralized authority that would be able to control Bitcoin’s supply. This is why holding BTC became a hedge against inflationary and devaluating currencies all over the world.
Today, the $1,200 stimulus check received by U.S. citizens after the financial crash in March is now worth over $2,500 if it would have been invested in Bitcoin, meaning that it experienced a 108% increase.
— $1200 Stimulus Is Now Worth (@BitcoinStimulus) October 31, 2020