markets report bitcoin price
Bitcoin,  Markets Report

Markets Report: Bitcoin hits 2020 record of $13,850 before major resistance hurdle

A retest of 2019 bull run highs is met with a modest retracement as higher levels hold on the day for BTC/USD

Bitcoin (BTC) reached new 2020 highs of $13,850 on Oct. 28 as markets rose to equal their 2019 peak.

Data from price trackers including CoinMarketCap showed the largest cryptocurrency putting in fresh gains overnight on Tuesday.

BTC/USD stopped short of retaking resistance at $14,000, the level which provided a “hammer” event during last year’s bull run to around $13,800.

“Bitcoin testing those 2019 highs over $13,800 is a beautiful thing. No blow off the top this time—just a nice steady grind up with occasional pullbacks,” trader Josh Rager commented on the events.

After failing to challenge $14,000, Bitcoin retreated to lows of $13,300 during the subsequent day’s trading, rebounding to hover above $13,400 at press time. 

Daily gains thus stood at around 2% after the $14,000 rejection, while weekly, investors made 11% returns.

“Feel the force of scarcity,” quant analyst PlanB summarized on Twitter.

BTC bulls sense pivotal moment

The continued uptrend contradicts calls for a retracement at lower levels — as Modern Consensus reported, these focused on a return to the mid to lower $11,000 range from $13,300.

Beyond immediate short-term price action, however, commentators remained arguably more bullish than ever on Bitcoin’s prospects.

“I do think we will see an all-time-high price for #Bitcoin before 2020 is over,” Gemini exchange co-founder Tyler Winklevoss tweeted. 

“Even though the price has climbed from 10k to almost 14k in less than a month, it hasn’t really gone on a breakout run yet. When we start to see 3-5k surges then the bulls will be on the run.”

Another post highlighted the culmination of a slow pivot towards Bitcoin in mainstream financial circles.

“The most financially sophisticated people I know, who do not work in crypto, all have taken positions in #Bitcoin in the last 6 months. This quiet groundswell of demand is the reason bitcoin is on its way to 14k and beyond,” Winklevoss wrote.

For those entities which entered the market prior to the latest gains, the benefits were clear. MicroStrategy, which purchased $425 million worth of BTC in August and September, was up $100 million as of Wednesday. By contrast, the company’s entire operating income for the past three years totalled $78 million. 

On Tuesday, CEO Michael Saylor endorsed forecasts from Real Vision CEO and fellow Bitcoin advocate Raoul Pal, who said that Bitcoin would topple interest in the Nasdaq and argued that it had already done so with gold. 

“Bitcoin is eating the world… It has become a supermassive black hole that is sucking in everything around it and destroying it. This narrative is only going to grow over the next 18 months,” he said. 

Markets report bitcoin price
Bitcoin’s year-to-date returns continue to outshine macro. (Photo: Skew)

Pal had already predicted on several occasions that Bitcoin would break its $20,000 all-time highs by early 2021 at the latest. 

On a technical level, little resistance remains past $14,000, and as a result, flipping that level to support would open up a resistance-free run to $20,000.

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Anthony Bevan is a journalist focusing on disruptive finance and cryptocurrency, along with the changing face of the market as Bitcoin gains mainstream adoption. Journalists covering cryptocurrency for Modern Consensus May hold positions in some of the currencies they write about.