Bitcoin is in rally mode once more. Whether it’s uncertainty from the US election, the future of the pandemic or simply more investor interest, the cryptocurrency is at the highest level since January 2018. Bitcoin was up 3.3% at US$14 463 as of 8.33am in London.
The digital currency has been benefiting from high-profile investments from the likes of Square and Paul Tudor Jones. JPMorgan Chase & Co’s JPM Coin was reportedly used to make a payment for the first time. Proponents argue bitcoin can be a diversifier in times of uncertainty, so events like lockdowns across Europe or delays of US election results could be fuelling its rise.
After taking out the June 2019 highs at $13 800, the next resistance is around $20 000, Fundstrat Global Advisors technical strategist Rob Sluymer said in a note last month.
The cryptocurrency world is, of course, famously volatile. Bitcoin has made parabolic runs upward before, notably in December 2017 and in mid-2019, before major tumbles. And many strategists and investors are sceptical. Empire Financial Research’s Whitney Tilson said in an e-mail on Wednesday that he still regards cryptocurrencies as “a techno-libertarian pump-and-dump scheme” and recommends most investors avoid them.
Still, some see the cryptocurrency’s march higher as poised to continue.
“Previous bitcoin resistance at about $10 000 may transition toward $20 000 in 2021,” said Mike McGlone, commodity strategist at Bloomberg Intelligence. “Certain supply leaves demand as the primary price metric, and most indicators remain positive.” — Reported by Joanna Ossinger, (c) 2020 Bloomberg LP
