Bitcoin has been having a tough time breaking through $14,000. (Photo by INA FASSBENDER / AFP) … [+]
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Bitcoin prices have experienced some notable volatility in the last few days, repeatedly breaking through $14,000 but then falling back.
The cryptocurrency surpassed the aforementioned level yesterday, rising to $14,060.67 before quickly retreating below $14,000, CoinDesk data shows.
The digital asset climbed to $14,257.53 earlier today, notching a fresh, 2020 high, additional CoinDesk figures reveal.
However, upon hitting this level, the cryptocurrency quickly declined, dropping to $13,958.24 in afternoon trading.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
While bitcoin has been facing difficulties in convincingly breaking through $14,000, several analysts described these challenges as being a temporary setback as the digital asset continues to appreciate.
When asked whether bitcoin faces strong resistance around $14,000, William Noble, chief technical analyst for cryptocurrency data provider Token Metrics, said that:
“I think it's better to say that 14k is just an even number.”
“BTC stopped there last night for a pit stop to refuel for higher levels,” he added.
“Any sideways action around 14k is just a part of a coiling process to eventually attack $17,000,” said Noble.
He added that “17k is roughly the target for what could be a head and shoulders bottom pattern on the BTC daily chart.”
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, also weighed in, describing $14,000 as “a major resistance” and emphasizing that it is “a key level for Bitcoin to breach and flip before it can target $20K.”
He also emphasized the impact the elections are having on the markets, stating that they are “naturally resulting in increased volatility and indecision as the market swings.”
Denis Vinokourov, head of research for London-based digital asset firm Bequant, also weighed in on how this key variable has impacted cryptocurrency markets.
“The focus on the U.S. elections has been such that even crypto and digital asset traders have turned more macro focused, and reacted promptly to various comments and tweets by the President and his opponent Joe Biden,” he stated.
Vinokourov noted how bitcoin can benefit from uncertainty, claiming that the digital currency rose in price “nearly every time there was a mention from the president of voter fraud and/or untoward behavior.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.
