Bitcoin surged higher on Tuesday despite weakness in the S&P 500 and other global stock markets. The price of the leading cryptocurrency shot to $13,750, the highest Bitcoin has traded in over a year. Per the BTC Times data, Bitcoin is up 5% in the past 24 hours.
Analysts are keeping their eyes on the charts as Bitcoin nears the $14,000 technical level.
Raoul Pal, chief executive of Real Vision and a former Goldman Sachs head of hedge fund sales, noted that the only macro resistances left on the Bitcoin chart are $14,000 and $20,000.
Simple technical analysis suggests that, should Bitcoin establish $14,000 as support, it would continue its ascent to $20,000 in the months ahead.
The reason why so much importance has been assigned to $14,000 is due to its historical relevance.
In 2019, Bitcoin’s summer rally topped at $14,000 almost perfectly. And 2017’s yearly candle closed at $14,000, making it a level of importance on a macro basis.
Bitcoin analyst “Light” argues that $14,000 will be relatively easy for Bitcoin to crack past, though.
Per his analysis, traders on OKEx’s futures market are pulling their bids in the $14,000 region, suggesting a move past that level is “increasing in probability.” Many analysts take note of OKEx’s order book as many large Asian Bitcoin investors use the exchange to trade their stack.
Overwhelmingly Positive Sentiment
Many investors believe Bitcoin will continue its ascent higher in the weeks and months ahead.
Real Vision, Raoul Pal’s financial research and news company, recently published a report indicating that their subscribers and interviewees are overwhelmingly bullish on Bitcoin relative to gold, volatility, and the S&P 500.
Further data shared by “Light” also indicates that investors are increasingly hesitant to sell their coins are current levels. Firstly, this indicates that investors expect upside from here. And secondly, this trend may compound a so-called “sell-side liquidity crisis,” where market supply cannot match demand fast enough, driving prices rapidly higher.