Bitcoin reaches highest price since January 2018

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Last Updated on 31 October 2020 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Bitcoin has been on a roll in the past few weeks with the leading currency hitting price highs in recent days. After sitting within the $11,000 mark the coin has gained over $2500 in just three weeks despite trading sideways during this period.

Bitcoin initially hit a yearly high of $13,823 on October 28 which coincided with miners selling their Bitcoin rewards before correcting sharply to $12,800. This move was similar to the 2018 bullish run and had many predicting huge things for the coin.

So far the predictions have been right as Bitcoin has since then recovered to the $13,500 region and briefly touched $14,027 today which represents a record high for 2020. And the highest price of Bitcoin since January 2018. Bitcoin’s journey to this point has been remarkable given the coronavirus pandemic ravaged world markets earlier in the year.

Bitcoin was also affected, but the leading cryptocurrency makes steady bullish moves since March. Although the gains have been steady, it is similar to the bullish period of 2017 which resulted in the record high of $20,000 in early 2018.

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Institutional acquisition key to Bitcoin’s rise

The Bitcoin price in the past few months has been largely pushed by fundamental analysis as several large financial institutions started to invest in Bitcoin. Microstrategy recent investment of Bitcoin surprised many with a one time purchase of $250 million worth of BTC.

This raised their investment to $450 million, Square also bought $50 million worth of Bitcoin which further solidified the positive sentiments. The investment of Microstrategy is currently $106,284,000 in profit and the investment of Square $ 15,407,000 as you can see in this public Bitcoin investments overview.

The developments of CBDCs by central banks globally have also reinforced the sentiments towards Bitcoin.

The last push was undoubtedly the announcement by leading payment processing platform PayPal. PayPal revealed a week ago that it will be support cryptocurrency purchases and trading on its platform.

On the technical analysis part, if the current trend continues, the coin would hit its next psychological barrier at the $14,500 mark, while a major support is available near the $11,500 mark. According to key analysts Bitcoin has respected the Fibonacci retracements and the price could move to the next key points.

The US elections coming soon could also play a major role in Bitcoin’s movement in the coming days. A victory for Trump would ensure that stock markets optimism continues however if Biden wins it could cause a ripple effect on the stock market.

The signs are healthy for the leading coin as its price has never been above $10,000 for so long and there are expectations that it could hit its all time high in 2021.