Bitcoin hit its highest price level in 2020 after it touched $10,495 on Thursday morning. The top cryptocurrency had spiked above $10k to see its price against the U.S. Dollar hit a 5-month high. The last time bitcoin’s price traded around this level was in September last year.
However, BTC continues to face stiff resistance at prices close to $10,500. It looks like BTCUSD might dip below yesterday’s lows before attempting another spike.
Bitcoin’s price up 44 percent YTD
BTCUSD traded at a low of $7,110 on January 2. The pair has since spiked 44 percent for bitcoin’s best start to a year since 2013.
After rising to price levels above $10k on February 9, bitcoin’s price hit a snag and yielded to a brief sell-off on February 10. The setback pushed prices down to a low of $9,783 on February 11. However, buoyed by a growing interest in bitcoin as a “safe haven” coin, BTC broke above $10,000 and hit a high of $10,290. Yesterday’s upside saw bitcoin hit a high price of $10, 492.
Bitcoin could retreat to $10, 200 before another upside
Stiff resistance means that BTC prices are likely to recoil in the early morning trading hours, potentially hitting $10,200.
Analysts say that although BTC retains a bullish sentiment, the bulls must not succumb to prices below $10k to maintain an upside advantage. However, if bulls fail to sustain momentum and a dip materializes, BTC could rely on support at $10,200 and $10,096. After that, any meaningful upsurge could drive prices above the key resistance area of $10,500 to target $11,000.
A confluence of factors helping BTC price
Analysts say BTC price will maintain its recent uptrend medium-term, pointing to a confluence of several factors.
First, interest in cryptocurrencies is on the rise and the price of BTC above $10k is a huge confidence booster for investors. There is also a bullish outlook for BTC as “halving” draws closer. Notably, prices have previously rallied in the days leading up to a “halvening.” Analysts forecast that this year won’t be any different and it could be the catalyst for bitcoin’s highest price in 2020.
Elsewhere, uncertainty in the global markets over the Coronavirus outbreak appears to be pushing investors to safe-haven assets. More and more people are buying bitcoin and other cryptocurrencies. The deadly coronavirus has already killed over 1,000 people while new cases are reported daily. Global cases of infection have surpassed 45,000.
Meanwhile, Ethereum (ETH) is up 3 percent to trade at $261 while XRP has gained 7 percent to reach $0.307. Overall, Bitcoin’s dominance index has dropped to 61.5% while the total cryptocurrency market capitalization has reached $300 billion.