Related Reading: Last Weekly Golden Cross Led Bitcoin to Rally 75% Rapidly; Will the Same Happen Now?
This would imply that reclamation of $10,000, then $20,000 on macro price scales will mean that Bitcoin has the fuel to shoot higher, potentially until it reaches another important round number.Why Round Number Prices Are So Important for Crypto
In a, Su Zhu of Three Arrows Capital said that round numbers in the cryptocurrency market are extremely important. Zhu claimed that “round numbers have even more meaning in crypto [than forex] because this is what everyone thinks.”Related Reading: Crypto Market is 0.25% of Global Stock Market: Can Bitcoin Catch Up?
It isn’t only Su Zhu who believes that $10,000 is of utmost importance for Bitcoin to surmount. Earlier this year, Fundstrat Global Advisors’ resident cryptocurrency analyst Tom Lee released an analysis from his firm that implied that $10,000 is the level to watch for the time being.We are apparently headed straight for LEVEL 10 FOMO in the market (via ) — Adam Samson (@adamsamson)
“Bitcoin faces solid resistance at the $10,000 level, with investors having difficulty valuing it given continuous debate on whether or not it’s an asset or a currency. For many investors, BTC will need to break that barrier for confirmation that meaningful gains could continue.”
Can Bitcoin Reach $10,000?
Speaking of Bloomberg and Bitcoin hitting $10,000, an analyst at the prominent markets research and news firm believes that it is “only a matter of time” before the leading cryptocurrency tops that key level.
Mike McGlone, senior commodities strategist at Bloomberg, last week revealed in his monthly crypto market update that he expects for Bitcoin to top the key $10,000 resistance eventually.Firstly, he drew attention to the fact that as gold rallies, so too should Bitcoin. While the precious metal is currently trending lower, having peaked last summer in the midst of the trade war talks, the macro picture may start to favor gold (and thus Bitcoin) heading into 2020.
Also, McGlone opined that a perfect storm is building for the cryptocurrency in terms of its “basic premises” — mass adoption and a fixed supply cap. “Bitcoin is winning the adoption race among crypto assets and is becoming increasingly scarce, which favors price appreciation. Plenty can go wrong with a nascent asset, but unless the basic premises reverse, there’s a higher probability to sustain price appreciation vs. depreciation,” he wrote.Related Reading: Stacking Sats or Xmas Charity? Billionaire Philanthropist Loads Up on Bitcoin
Featured Image from Shutterstock