It’s been a big week for Bitcoin.
At press time Bitcoin has held levels above $12,000 since Wednesday, and appeared to be on track to break through the $13,000 resistance.
BTC hasn’t broken through $13,000 since June of 2019. Before that, the only other time that Bitcoin has crossed the $13,000 mark was during the crypto bubble that formed at the end of 2017.
However, both times that Bitcoin managed to reach past the $13,000 point, the gains were fairly short-lived. In June of 2019, the past over $13,000 only lasted one day; BTC was back under $12,000 in less than a month. In the bubble of 2017, BTC’s pass above $13,000 extended all the way to roughly $20,000, but lasted only six weeks.
Will this time be any different?
Bitcoin has been gaining and plateauing throughout the year
For a number of analysts, the answer is yes.
In large part, this pass over $13,000 appears to have been the result of steady growth that has taken place over the course of the last seven months (or 10 months, if you don’t count March’s “Black Thursday” crash.)
Throughout most of this year, Bitcoin has oscillated between gaining and plateauing.
In January and February, BTC steadily rose from $7,000 to $10,300; of course, BTC crashed to roughly $4,000 in the second week of March–but by the end of April, BTC was almost completely recovered, continuing the along the upward trajectory that had begun to form earlier in the year.
After some light volatility in late May and early June, Bitcoin formed a plateau between $9,000 and $10,000 throughout most of June and July.
Then, Bitcoin swiftly swung upward: from July 24th to 28th, the value of BTC hit $11,000; the month of August saw the BTC price form a plateau between $10,000 and $11,000. The price dipped at the end of the month; September saw BTC sitting between $10,000 and $11,000.
This pump is organically spot driven.
There is almost no order book resistance.
Yes things can change quickly, it’s crypto.
But this is a very healthy move.
Something we have never seen before at 12K plus #bitcoin.
— Charles Edwards (@caprioleio) October 22, 2020
The bull run that’s currently bringing Bitcoin over $13,000 began on October 18th, when BTC was at $11,400; BTC has made consistent daily gains since then.
If the pattern that seems to have been formed by Bitcoin’s price movements throughout this year continues, this latest upward move could result in a plateau.
Are BTC’s PayPal-related gains short-lived?
However, it’s unclear whether or not the support to sustain a price level over $13,000 for more than a brief moment is there.
After all, while the latest bull run that has brought Bitcoin up from $11,400 to more than $13,000 started late last week, the continuation of the run appears to have been largely driven by an important piece of news.
On Wednesday, payments giant PayPal announced that its users would be granted the ability to pay…