Bitcoin investors have long been drawn to round numbers. $ 1 BTC milestone. $ 100 BTC – be sure to keep an eye on this level. $ 1,000 BTC: Now everyone on deck. According to a prominent crypto investor, these round numbers are actually of great importance – especially in this still young market.
Put simply, when Bitcoin reaches a round price of $ 10,000 or $ 20,000 again, on macro price scales it means that Bitcoin has the fuel to go even higher – possibly until it reaches another important round number.
Why round numbers are so important for prices
In a podcast with Luke Martin, Su Zhu from “Three Arrows Capital” recently emphasized the importance of these round numbers in the cryptocurrency market. According to Zhu, “round numbers in crypto [as forex] are even more important because that’s what everyone thinks.”
Essentially, this means: Zhu believes that $ 10,000 will be an important moment for the leading cryptocurrency when it comes to analyzing price promotions.
Su Zhu is not the only one with this view. Others also believe that $ 10,000 is of paramount importance for Bitcoin to rise higher.
Earlier this year, Fundstrat global advisors cryptanalyst Tom Lee published an analysis that $ 10,000 is the level to be monitored for now.
Fundstrat writes in the analysis that as soon as BTC exceeds the $ 10,000 mark, “Level 10” FOMO will hit the market. This was most recently the case when BTC surpassed $ 4,500 in late 2017. If the past is a guide, the cryptocurrency market will grow even higher once $ 10,000 is reclaimed at the macro level.
As Lee wrote on Twitter earlier this year, “[$ 10,000] FOMO will see from those who were happy about the 90% crash in BTC … and those who declared Bitcoin dead as always …”
Bloomberg also wrote in November about the apparent meaning of the barrier between four and five digits:
“Bitcoin is facing solid resistance at the $ 10,000 level, and investors are struggling to assess it as there is constant debate as to whether or not it is an asset or a currency. For many investors, BTC will have to break through this barrier to confirm that meaningful gains could continue. ”
Can Bitcoin Reach $ 10,000?
Speaking of Bloomberg and Bitcoin at $ 10,000, an analyst with the renowned market research and news company believes that it is “just a matter of time” before the leading cryptocurrency reaches the key position.
Bloomberg’s senior commodities strategist Mike McGlone revealed in his monthly crypto market update last week: He expects Bitcoin to surpass the key resistance of $ 10,000.
First, he points out that Bitcoin should also participate in the gold rally. While the precious metal is currently trending lower and peaking last summer, the macroeconomic picture could begin to favor gold (and therefore Bitcoin) on the way to 2020.
According to McGlone, the cryptocurrency would brew a perfect storm in terms of its “basic premises” – mass adoption and a fixed delivery limit.
“Bitcoin wins the adoption race among crypto investments and is becoming increasingly scarce, which favors the price increase. A lot can go wrong with an emerging asset, but unless the fundamental premise is reversed, there is a higher likelihood of price increases than losses. ”