Bitcoin rises to a three-year high, analysts say it is expected to reach a record high of $20,000

Source: Cailianshe

Cailian Press (Shanghai editor Liu Rui) reported that on Wednesday morning Beijing time, Bitcoin rose above $13,852 per coin, reaching a new high since January 2018. Analysts pointed out that if Bitcoin can break through the technical resistance level of $14,000, it may rise to a record high of $20,000 in one fell swoop.

Bitcoin continues to have good news

Bitcoin has been on a tear for the past two weeks, with positive news continuing to drive its price higher. Last week, mobile payment company Square said it had bought $50 million worth of Bitcoin in one day without disrupting the market, further increasing its investment in the cryptocurrency.

Subsequently, global payment giant PayPal also stated that it would allow account holders to own, buy, sell and transfer Bitcoin. 26 million PayPal partner stores will accept PayPal payments in cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash and Litecoin early next year, which further enhances the credibility of Bitcoin.

Institutional investors then expressed optimism about Bitcoin. JPMorgan Chase said last week that Bitcoin looks very attractive because millennials prefer Bitcoin to gold, which makes it possible for Bitcoin to challenge gold's low position as an "alternative currency" in the future.

JPMorgan analysts believe that Bitcoin has the potential to increase by 1 or 2 times, or even 10 times, from its current level in the future to reach a market value comparable to that of the gold market.

Resistance is just around the corner

After Bitcoin surpassed its 2019 high of $12,000 in July, Katie Stockton, founder of Fairlead Strategies, pointed out that the next resistance level for Bitcoin is $14,000. This is also consistent with the long-term Fibonacci retracement level.

“Bitcoin has seen improving short-term momentum in its long-term uptrend, with the next resistance near $14,000,” Stockton said.

He believes that if Bitcoin breaks through $14,000, the next technical level may be at $20,000, a record high. At the moment when Bitcoin has risen above $13,850, it is only one step away from the $14,000 resistance level. If it breaks through the $14,000 resistance level, Bitcoin is expected to rise to a record high.

Bitcoin has risen 87% so far this year, but still has 32% room to rise from its all-time high of $19,783 in 2017.