Bitcoin Needs $11,700
Since this Bitcoin (BTC) rally started, analysts have been asking, when and how will cryptocurrencies reach new heights? According to Level’s Josh Rager, getting BTC past $20,000 isn’t as hard and far away as some may think.
In a well-received recent tweet, the popular analyst, who has risen to prominence amid 2018’s bear market, claimed that Bitcoin needs to close above $11,700 to spark a move to new highs. For those unaware, $11,700 is the price point at which BTC found resistance during the collapse from $20,000, and where BTC topped during April 2018’s bear market rally.
As to why this will happen, Rager explained that there is minimal resistance between $14,000 and $16,000, as made evident by Bitcoin blowing past those levels without faltering in 2017’s parabolic move. He adds:
“Bullish sentiment & greed will propel price action to new highs & accumulating under $11,700 will be key, imo.”
Indeed, many believe that once Bitcoin enters the five-digit range once again, FOMO will descend on the market once again. In fact, Tyler Winklevoss, the (purported) Facebook pioneer turned Gemini co-founder, claimed yesterday that once the cryptocurrency surmounts $10,000, “you can be it’s going to break $15,000.” Some have been even more optimistic.
Per Tom Lee, once Bitcoin reaches $10,000, “Level 10” FOMO will grace this market, which last occurred when BTC blipped above $4,500 in late-2017. If history is any guide, the cryptocurrency market will shoot even higher once $10,000 is breached. In a recent podcast with Binance’s chief financial officer, Wei Zhou, Lee opined that there will be a “fast and furious” move to $20,000 following a break and close above $10,000. And from there, Bitcoin will double in the next five months, reaching $40,000 in a jaw-dropping move.
You see, right now, few have taken note of Bitcoin’s recovery from $3,150 to $9,300. Anecdotally, this writer knows few individuals that know of BTC’s current price, with many thinking that Bitcoin is either dead or still at sub-$4,000 levels. Nothing shows this trend better than Google’s search statistics. While there has begun to be mass media coverage of the cryptocurrency space, search interest for the terms “Bitcoin”, “crypto”, “ethereum”, etc. are still well under levels seen in late-2017 and early-2018. This implies that retail investors, be in your mom & pop investors in rural America or the relatively wealthy in Asia, are not keeping a close eye on this space.
Once $10,000 is broken past, many expect for mainstream coverage to increase, retail to finally take notice, and investors to start siphon more and more money into this asset class, catalyzing mass FOMO and a strong uptrend.
Where Will BTC Peak?
This begs the question — if new highs are in store, where will BTC top next? Per previous reports from Ethereum World News, Rager notes that over Bitcoin’s three completed cycles, the trough to peak gains decreased by around 80% each time, which is a concept defined by the law of diminishing returns. As Rager notes, 2011’s rally saw a return of 320,000%; 2014, 58,500%; and 2017, 12,000%. Thus, if history is followed to a tee, BTC will rally by 2,400% off its bottom, giving it a potential high of just shy of $80,000, $78,500.
Photo by Timo Volz on Unsplash
