Bitcoin price smashes resistance; seeks US$9,000

The cryptocurrency added nearly US$800 earlier this week in its biggest single-day price gain in a month.

The Bitcoin (BTC) price soared over eight percent to a two-month high of US$8,889.71 on Tuesday (14 January), smashing key resistance zones.

This was the cryptocurrency’s biggest single-day increase in a month – after a softer week prior, in which price fell 9.3% in the second half, based on Bitstamp data.

It was a bullish day in general for the cryptocurrency market, which also saw Bitcoin BSV skyrocket 70.5%, Bitcoin Gold move up 77.38%, and DASH race forward by 47.23%.

Since then, BTC has retraced to a region of US$8,670.

Price breakout ahead of reward halving

As IG last reported, BTC got off to a good start in 2020, with price rising nearly 14% in the first week of January alone. This is the crypto’s best start to a new year since 2012.

One expert – Antoni Trenchev, the founder of cryptocurrency lending facility Nexo – had predicted following that rise the bitcoin price could rise an estimated 635% to hit US$50,000 by the end of 2020.

‘Our analysts have done very substantial research, and there is a hell of a ride coming up because the rewards for miners are dropping. The last time this happened, bitcoin rallied 4,000%,’ Trenchev had told Bloomberg TV, adding that anticipation surrounding a bitcoin reward halving event taking place in May was driving price up.

A reward halving, during which the number of new bitcoins being issued are cut by 50%, takes place every four years in BTC’s case.

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Next big uptrend: US$10,350

A similar bull view was reiterated after this latest price rally by another analyst.

Sonny Singh, BitPay’s chief commercial officer, predicts that the Bitcoin price would exceed US$20,000 and its all-time high of US$19,783.06 recorded in December 2017, thanks to ‘something unforeseen’ like the 2015 Greek sovereign debt crisis.

‘I don’t think people actually went and sold their GD (Athex Composite Index) stock and bought Bitcoin, but I see what happens is just a few people start buying Bitcoin, and with technical trading, that really bumps it up and makes it go a lot higher and a lot faster,’ he explained.

In the medium term, analyst Josh Rager says the next big uptrend can only be confirmed when BTC breaks the US$10,350 threshold.

For now, Rager says US$9,400, which was a support level during 2019’s peak trading levels from June to October, is a significant area to cross.

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