The price of Bitcoin has started the New Yearon a positive note and on Tuesday, the 14th of January 2020, the price reached a 2-month high.
Bitcoin Price Surges by 3.6% to Reach New High
Interestingly, the price of the leading cryptocurrency hit a 2020 bottom on the 3rd of January, after it traded at the $6,852 mark. However, the top crypto has since then embarked on a mini-rally to surpass the $8,000 mark. Yesterday, the Bitcoin price went up by 3.6% to trade at $8,848. This surge in price saw Bitcoin reach its highest level since November the 12th, according todata obtained from CoinDesk.
Bitcoin has been following a broad and upward trend over the past few days and could continue this way. The Bitcoin price has since dropped to the $8,600 mark, but crypto enthusiasts are optimistic that it would attempt to cross over the $10,000 mark very soon.
Fundamental and Technical Factors Push Bitcoin Price Higher
According to some analysts, the current spike in the Bitcoin price is attributed to both technical and fundamental factors.
The founder and CIO at Valiendero Digital Assets, Christopher Brookins, while speaking about the rise in the recent Bitcoin price, stated that the sharp move is due to the combined uptick in fundamentals and technical factors.
Brookins further believes that Bitcoin has reached its bottom price, citing the sharp uptick in Bitcoin’s hashrate. He believes that the leading cryptocurrency’s price could rally from here on. According to Brookins, Bitcoin was oversold in the last quarter of 2019.
Some analysts agree with Brookins’s analysis of the recent price surge. Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, also pointed out that the rise in the Bitcoin price was due to both fundamental and technical factors. He stated that, “First, the digital currency appreciated during the US-Iran tensions, going from $6,860 to $8,460. This move took it above our previously cited support level at $7,700.”
Also, the legal battle involving Craig Wright continues to take center stage in the crypto space. Wright claims to be the real Satoshi Nakamoto and he is apparently in possession of keys worth billions of dollars in BTC. The new developments in the Wright case have affected the prices of Bitcoin SV, Bitcoin Cash, and Bitcoin, DiPasquale added.
Recent rumors speculate that Wright has the final keys to unlock the so-called Tulip Trust, which contains over 1.1 million BTC coins. The news has seen the price of Bitcoin SV higher by more than 90% over the past few hours.
Bullish Trends to Return If BTC Price Holds at $8,400
Brookins believes that if the Bitcoin price is able to hold above the retest/break key resistance level of $8,442, then it would confirm the return of the bull trend. However, he added that Bitcoin is merely trying to regain what it lost in the last quarter of 2019.
Although Bitcoin is overbought at the moment, Brookins doesn’t see a reversal happening just yet. “As long as $8442 (now support) holds after RSI decompresses, the bulls are in control again,” he added.