Simon Peters (eToro) | Bitcoin has passed the much-feted $10,000 resistance level, the first time since the crash of February 2020 when it dipped to $3,850 due to Covid-19 fears.
The cryptoasset rose steadily through yesterday before a surge late on, peaking at $10,428, the highest level since the coronavirus crisis began. Bitcoin’s previous high for 2020 was $10,371 on 15 February, before news of the spread of coronavirus had begun to affect markets. This morning, Bitcoin fell back somewhat, trading around $10,082 early on today, just under a 6% gain in 24 hours. There is a long standing resistance level just below the $10,400 mark which has proved to be a tough hurdle several times over the last 9 months.
Elsewhere Ethereum and XRP rose too, albeit more modestly. Ethereum gained around 4% in the last 24 hours and is now trading around $248. Likewise, XRP was up just over 3%, to around $0.2107 early this morning.
“In my view, it is absolutely critical that the price stays above this level to ensure we don’t see a capitulation similar to Q1. This could be the bullish moment the cryptoasset needs to embark on its deserved post-halving bull run. Should we see the bitcoin price gather momentum as it has done in the past, more people will begin to see the asset class as a long term investment, which will contribute both to its performance but also to increased adoption.
“A positive development in bitcoin’s recent history is that demand is not originating purely from developed economies. As the UTXO data shows, many investors are looking to hold bitcoin for the long term instead of regularly trading in and out, and we are seeing large demand from Latin American countries such as Argentina, where the government is close to defaulting on its debts, and Venezuela, where hyperinflation has taken hold. This in addition to demand from the US, UK and Europe.
“This price level could see bitcoin recognised as not just a long-term investment in its own right, but a global investment at that.”