Bitcoin flattened $18,000 on Nov. 18 as the largest cryptocurrency’s 2020 bull run continued to wow spectators.
Data from price trackers including CoinMarketCap saw Bitcoin abruptly charge through the $18,000 wall overnight on Tuesday, reaching $18,420 before reversing.
At press time on Wednesday, BTC/USD had dropped back to around 17,700 amid heavy volatility. Following the initial high, a sudden capitulation saw the pair shed $1,000 in minutes before a rebound kicked in, then retreated again.
As such, Bitcoin created a new $1,000 “corridor” in which it has since stayed, with $18,420 as its ceiling. Where it could go now, analysts consider, is likely higher still.
Bitcoin price: 8 months, $15,000 gains
“Hard to believe that 8 months ago Bitcoin was in the $3ks,” trader Josh Rager mused. He described the dip to $17,500 as a “nice pullback” and said that more would follow. To stay bullish on short timeframes, Rager demanded that Bitcoin regain the $18,000 mark, something which subsequently occurred.
As Modern Consensus reported, faith in the solidity of current higher levels comes in the form of market composition. The “organic” nature of the bull run, based on coins being bought up for long-term investment, not speculation, is ensuring a firmer price foundation.
“Big difference with 2017 is that most BTC sold today will never see the daylight again, they disappear into deep cold storage,” quant analyst PlanB tweeted as Bitcoin crossed $18,000.
“Buyers today are professionals with long term vision and staying power.”
The official @Bitcoin Twitter handle summarized that the current nature of Bitcoin was “very different” to the last time it hit those price levels in 2017.
Mexican bank mogul converts 10% of assets to BTC
In a telling and possibly embarrassing U-turn, meanwhile, famous investor Ray Dalio appeared to admit that his criticism of Bitcoin earlier this week was based on no factual evidence.
In an increasingly viral Twitter exchange, Dalio conceded that he may not have understood Bitcoin while claiming that it was no good as an investment vehicle.
“[M]ight be missing something about Bitcoin so I’d love to be corrected,” he wrote, again listing three principal misgivings which respondents noted had long been debunked as myths.
Before the reversal, Dalio was already in a rapidly dwindling minority of traditional finance figures who remain firmly hostile to Bitcoin. Others, among them Stanley Druckenmiller and Ricardo Salinas Pliego, Mexico’s third-richest man, recently came out as fans. Pliego, who revealed he now stores 10% of his wealth in BTC, even publicly advertised Saifedean Ammous’ popular book, “The Bitcoin Standard,” on Twitter.
Beyond the headlines, the moves by big money into Bitcoin highlight the start of a growing trend backed by long-term investment strategies.
“In a world where #Bitcoin is .01% of the investment options, with .1% of the invested capital, understood by less than 1% of the investors, familiar to less than 10% of the people, a 47% yes vote is an overwhelming endorsement,” Michael Saylor, whose company, MicroStrategy, itself bought $425 million of Bitcoin in Summer, concluded on Wednesday.
“Those who remain short $BTC should be terrified.”