The Bitcoin price finally exceeded the $14,000 mark today.
This is the first time since January 2018 that the coin has reached this level.
A correction is possible, but not certain, and there are fundamental reasons why the price could continue to rise.
Since the biggest crypto-bull run in history, when Bitcoin climbed to $20,000, the coin is struggling to get back to this level. So far this has not happened. However, BTC took an important step in the right direction this morning when its price suddenly shot up and tried to break through the $14,000 barrier.
Bitcoin just broke through the $14,000 barrier.
The leap was sudden, and it allowed the BTC to rise back to levels not seen since January 2018. Not only did the coin reach $14,000 per unit – it surpassed that mark and eventually reached a new high of $14,100.
This is almost $300 above the previous year’s high of $13,863, which was reached three days ago, on October 28.
Once the rise had taken the coin to this high, a correction in the price of Bitcoin naturally set in, taking it down to $13,680.
However, once the coin reached that price, it began to rise again, bringing it back to its price at the time of writing of this article, which was $13,900.
In other words, it appears that the coin is launching another attack on the $14,000 resistance, as it seems ready to continue the growth that began in mid-March after the crash caused by fears of COVID-19.
What is the next step?
From a technical standpoint, the BTC appears to be in an overbought zone. Its RSI is above 70 points, which means that it is likely to be sold out in the near future. Traders should be very cautious about how they proceed from this point forward.
However, it is also possible that the price will simply continue to rise. Market sentiment is certainly bullish, and the recent announcement by PayPal and other major financial institutions has contributed a lot to this.
For example, Microstrategy and Grayscale have accumulated hundreds of millions of BTCs for their customers this year, indicating that the institutions have developed a strong interest and are not letting go.
It should also be noted that the U.S. presidential election is only a few days away and that this event could have a major impact on Bitcoin’s behavior over the next week or two.