Bitcoin Growth Nears Its Highest Level In Nearly 3 Years, And Is Set To Test A Key Technical Level That Could Spur A Move Towards $ 20,000 | Currency News | Financial and business news

PHOTO FILE: Representations of the virtual currency Bitcoin are seen in this image, taken on March 13, 2020. REUTERS / Dado Ruvic / Illustration / Photo file
FILE PHOTO: Representations of the virtual currency Bitcoin are seen in this image taken

  • Bitcoin rose more than 3% on Tuesday as it approached a key resistance level at $ 14,000.
  • Recent positive developments for the digital cryptocurrency include PayPal allowing its account holders to buy, sell and transfer bitcoins, as well as Square’s purchase of bitcoin worth $ 50 million.
  • If bitcoin is able to decisively trade above the $ 14,000 level, the next resistance level that traders will observe will be its all-time high near $ 20,000.
  • Visit the Business Insider home page for more stories.

Bitcoin surged more than 3% on Tuesday to $ 13,480, putting the digital currency a considerable distance from its June 2019 high of $ 13,880.

If bitcoin surpasses $ 13,880, it would reach its highest level in nearly three years.

The cryptocurrency has benefited from a positive flow of stocks over the past week. Square claimed to have promoted its bitcoin investments by purchasing $ 50 million worth of digital currency in a single day without disrupting the market.

Shortly after Square’s announcement, PayPal said it would allow its account holders to buy, sell and transfer bitcoins, giving the crypto asset credibility.

Institutional investors are starting to take notice. JPMorgan said last week that bitcoin looks attractive as it competes with gold as an “alternative” currency. The firm noted that millennial investors prefer bitcoin to physical gold.

JPMorgan said it believes bitcoin could double or triple from current levels and should rise 10x to equal the value of all physical gold in the world.

Read more: BANK OF AMERICA: Buy these 11 undersized stocks ahead of their earnings reports because they are the most likely candidates to exceed expectations in the weeks to come

“Even a modest crowding of gold as a long-term ‘alternative’ currency would mean doubling or triple the price of bitcoin,” JPMorgan said.

With bitcoin on the rise, technical details are entering the scene as it pushes against the last major resistance level before its all-time high around $ 20,000.

That level is $ 14,000, just 4% above bitcoin’s current price as of Tuesday afternoon.

“Bitcoin has seen short-term momentum improve in its long-term uptrend and has a good resistance, which is close to around $ 14,000,” Fairlead Strategies founder Katie Stockton said in a statement last week.

If bitcoin is able to decisively trade above its $ 14,000 resistance level, all eyes will be on its next and last remaining resistance level: $ 20,000. A break above that level would drive the cryptocurrency to new all-time highs.

Bitcoin has risen 87% since the start of the year, but is still 32% below its 2017 high of $ 19,783, according to Coindesk data.

Read more: “Basically I will be long growth”: billionaire investor Chamath Palihapitiya has achieved a 997% return since 2011. He details the 5 sectors that shape his long-term investment playbook.

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