- Bitcoin jumped more than 3% on Tuesday as it approached a key resistance level at $ 14,000.
- Recent positive developments for digital cryptocurrency include PayPal allowing its account holders to buy, sell and transfer bitcoin, as well as the purchase of bitcoin from Square worth $ 50 million.
- If bitcoin is able to decisively trade above the $ 14,000 level, the next level of resistance traders will watch is its all-time high of nearly $ 20,000.
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Bitcoin jumped more than 3% on Tuesday to $ 13,480, putting digital currency within reach of its high of $ 13,880 in June 2019.
If bitcoin breaks above $ 13,880, it would hit its highest level in almost three years.
The cryptocurrency has benefited from a flow of positive headlines over the past week. Square said it continued its investment in bitcoin by buying $ 50 million worth of digital coins in a single day without disrupting the market.
Shortly after Square’s announcement, PayPal said it would give its account holders the ability to buy, sell and transfer bitcoin, thereby lending credibility to the crypto asset.
Institutional investors are starting to notice this. JPMorgan said last week that bitcoin is attractive because it competes with gold as an “alternative” currency. The firm noted that millennial investors prefer bitcoin to physical gold.
JPMorgan said he believes bitcoin could double or triple from current levels and would have to rise 10 times to match the value of all physical gold in the world.
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“Even a modest crowding out of gold as a long-term ‘alternative’ currency would imply a doubling or tripling of the price of bitcoin,” JPMorgan said.
With Bitcoin on the rise, technicalities are focused as it hits the last major resistance level ahead of its all-time high of around $ 20,000.
That level is $ 14,000, just 4% above the current bitcoin price on Tuesday afternoon.
“Bitcoin has seen its short-term momentum improve in its long-term uptrend and has good wiggle room to resist, which is close to around $ 14,000,” said Fairlead Strategies Founder Katie Stockton. , in a note last week.
If bitcoin is able to decisively trade above its resistance level of $ 14,000, all eyes will be on its next and last remaining resistance level: $ 20,000. A break above this level would set the cryptocurrency to new all-time highs.
Since the start of the year, bitcoin is up 87%, but is still 32% below its 2017 high of $ 19,783, according to data from Coindesk.
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