Over the past two weeks, the demand for Bitcoin has significantly increased due to global financial market instability, major economic changes and currency devaluation. Analysts state that once Bitcoin breaks the $790-800 region, it will quickly head towards a four figure price.
The demonetization of 500 and 1,000 bank notes in India, the devaluation of the Chinese yuan, the crackdown on Chinese wealth management products (WMPs) and the election of Donald Trump, among many other factors, has led to the price of Bitcoin to escalate quite rapidly.
On Oct. 22, Bitcoin was being traded at around $660 on average in most markets. By Nov. 20, the Bitcoin price almost reached $800, surpassing its previous peak of $775.
Despite yesterday’s fall, which sent Bitcoin back to the $732 region, it has demonstrated nearly a $100 monthly increase since late October, outperforming all reserve currencies, most assets and altcoins.
Breaking $800
Some analysts state that once Bitcoin breaks $800 with resistance, the digital currency will promptly head towards a four figure price. Specifically, if it is backed with significant economic and financial change that pressures high profile investors and traders to seek alternative safe haven assets, Bitcoin will most likely reach a four figure price.
Once #Bitcoin price breaks $790 - $800 resistance with volume, I think we are heading back to a 4 figure Bitcoin price fast. pic.twitter.com/p0FNIQ6fpZ
— Renegadeinvestoruk (@sharkybit) November 17, 2016
Upon the election of Donald Trump, the price of Bitcoin immediately surged to around $730. A substantial number of analysts, traders and users stated that such an increase in price is only short term and that without high resistance levels, it is bound to decline back to its previous point.
However, the $730 margin was used as a resistance level for Bitcoin to again increase to $770. In spite of the recent fall, Bitcoin is still hovering at $737, a value higher than the period of global financial market turmoil caused by the election of Trump.
Thus, it is highly likely that Bitcoin will head towards a four figure price once it breaks $800, particularly if it is backed by investors seeking safer assets to protect their wealth.