Bitcoin price returns to $14k for the first time since January 2018

Bitcoin price returns to $14k for the first time since January 2018
Written by:
Ali Raza
October 31, 2020
  • Bitcoin price has finally crossed the $14k mark earlier today.
  • This is the first time that the coin has reached this height since January 2018.
  • A correction is possible, but not certain, and there are fundamental reasons why the price might grow further.

Ever since the largest crypto bull run in history, when Bitcoin climbed up to $20,000, the coin has been struggling to go back to these levels. So far, this has not yet happened. However, BTC made a major move in the right direction earlier today, when its price suddenly surged, attempting to breach the $14k barrier.

Bitcoin just breached $14k

The leap was sudden, and it allowed BTC to climb back up to the levels not seen since January 2018. The coin did not only reach $14k per unit — it exceeded it, ultimately reaching a new high of $14,100.

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This is nearly $300 above the previous annual high of $13,863, reached three days ago, on October 28th.

Of course, after the surge led the coin to this peak, Bitcoin price started seeing a correction that took it down to $13,680.

However, as soon as the coin reached this price, it started going up again, which led it to its price at the time of writing, which is $13,900.

In other words, it would seem that the coin is launching yet another attack on the $14k resistance, as it appears ready to continue the growth which started all the way back in mid-March, after the crash caused by the fears of COVID-19.

What happens next?

From a technical perspective, BTC seems to be in an overbought zone. Its RSI sits above 70 points, meaning that a sell-off might be expected in the near future. Investors should, therefore, be very careful about how they are going to proceed from this point forward.

But, it is also possible that the price will simply continue growing. The market sentiment is certainly bullish, and the recent announcement from PayPal and other large financial institutions has contributed a lot to this.

For example, Microstrategy and Grayscale have been accumulating hundreds of millions in BTC for their clients throughout this year, indicating that institutions have developed a strong interest, and that they are not letting go.

Another thing to keep in mind is that the US presidential elections are in only a few days, and that this event could reflect strongly on Bitcoin’s behavior over the next week or two.