Just yesterday, bitcoin rose to about $13,400, though at press time, the currency has dropped a bit and is now trading for around $13,100. That’s a $300 slip in less than 24 hours. Not a good sign, and yet per many analysts’ thoughts, bitcoin is still in relatively tough shape and likely to remain so for the remainder of the year.
Bitcoin Is Heading Up Again
The present price of bitcoin has been preceded by all kinds of serious news in the industry, including the growing rate of institutions taking part in digital currency trading. For one thing, companies like Square have purchased more than $50 million in BTC units, while Grayscale has seen the amount of assets its managing jump significantly over the course of a single day.
In addition, companies like PayPal – arguably the largest online payment platform to ever exist – says it will now permit customers to utilize bitcoin and other forms of crypto when paying for goods and services. This appears to have had the biggest impact on bitcoin, as shortly after the announcement, bitcoin began to exhibit its largest spurts of price action.
Companies like JPMorgan are even beginning to take strong notice of what bitcoin is becoming. In a recent letter, the company compared the asset favorably to gold and said that it’s a prime example of an “alternative” currency. The letter also commented that millennials see bitcoin in a rather powerful light, and that the generation is likely to play a significant role in the asset’s growth.
JPMorgan even said that it expects bitcoin to grow and that it could be two or three times larger than it is now in a relatively short period of time. The company explained:
Even a modest crowding out of gold as an ‘alternative’ currency over the longer term would imply doubling or tripling of the bitcoin price.
With all this good news in the mix, there are many analysts out there who seem to think that new technical signs are emerging. These signs suggest that BTC could once again reach $20,000, which means that the asset will be at its all-time high again for the first time in roughly three years. BTC has not been trading this high since December of 2017.
$20,000 in the Close Future?
Fairlead Strategies founder Katie Stockton explained in a recent note:
Bitcoin has seen short term momentum improve within its long-term uptrend and has a good amount of room for resistance, which is close to about $14,000.
Still, however, the currency has a while to go before it reaches its December high again, as the asset is still about 32 percent lower than where it stood three years ago. The good news, however, is that BTC is presently up by about 87 percent since the beginning of the year, so clearly the currency has what it takes to strike up its momentum quickly.