Why $10k is Quite Crucial For Bitcoin
For a long time, Bitcoin investors have been gravitating to round numbers. A renowned crypto investor and commentator known as Su Zhu, said there is truth to the significance of these round numbers, specifically in this immature market.
Zhu expressed himself recently in a podcast with Luke Martin. According to his claim,
“round numbers have even more meaning in crypto [than forex] because this is what everyone thinks.”
That is, he thinks that Bitcoin topping $10k will be a critical moment as regards price action analysis.
However, other market participants also believe that $10k is very crucial for Bitcoin to subdue.
One of them is Tom Lee of Fundstrat Global Advisors. Lee released an analysis in the early moments of 2019, implying that $10k is the level to focus on for the time being.
According to Fundstrat, immediately BTC attains $10k, there will be “Level 10” FOMO in this market, and the last time it happened was when BTC surged over $4,500 at the end of 2017. Going by history, the crypto market will experience an upsurge immediately it reclaims $10k on a macro scale.
Bloomberg likewise explained the crucial nature of the restriction between four digits and five:
“Bitcoin faces solid resistance at the $10,000 level, with investors having difficulty valuing it given continuous debate on whether or not it’s an asset or a currency. For many investors, BTC will need to break that barrier for confirmation that meaningful gains could continue.”
Mike McGlone at Bloomberg talked about Bitcoin topping $10k in the long run, as it is a key level. He believes that BTC will ultimately top the main $10k hurdle. He first mentioned that BTC is expected to rally just like gold.
Gold is at the moment trending lower, after attaining a peak last summer as the trade war talks are ongoing. However, the macro outlook may begin to favor gold, as well as Bitcoin as 2020 approaches.
McGlone talked about mass adoption and a fixed supply cap of Bitcoin. He said that the leading crypto is winning the adoption race among cryptocurrencies and continues to be scarce, thereby favoring price appreciation. He continued:
“Plenty can go wrong with a nascent asset, but unless the basic premises reverse, there’s a higher probability to sustain price appreciation vs. depreciation.”
Source: Crypto Press News.