Bitcoin has seen enough bearish days over the last couple weeks, say the bulls pushing up its price today. A big boost from a big name like Square, which today announced a $50 million investment in Bitcoin, could not have come soon enough for holders.
September was something of a roller coaster ride for Bitcoin, which isn’t exactly atypical for the volatile digital asset. But the last few days of September were particularly interesting.
Bitcoin touched the $11,000 per coin mark and the market showed signs of optimism. Then, late Tuesday, President Trump announced there would be no new COVID-19 relief package, sparking fear in the markets. The Dow sunk 600 points and Bitcoin likewise plummeted, though the asset continued to show support above $10,000.
Trump, of course, later changed his mind, which helped to turn the tide. But, in the cryptoverse, Jack Dorsey—an outspoken Bitcoin enthusiast—may in fact hold more sway.
After Dorsey’s Square announced today that it bought $50 million in Bitcoin, the cryptocurrency shot up faster and more sharply than it fell with the Trump news. Nevertheless, Bitcoin is still trading within that $10,500 to $11,000 range and has yet to break through.
Zooming out, Bitcoin’s price rise comes just in time to provide its investors with some relief. Since March, Bitcoin has demonstrated to be trading in a strong bullish channel, but it had come very close to losing that support over the last few days.
If the positive trend didn't hold, Bitcoin risked falling to $9,000—and then $7,000 after that, with the last support near $5,000. A scary thought for holders, no doubt.
The good news is that every day that Bitcoin stays above $10,000, that $10K support line grows stronger. With any luck for investors, soon counting to Bitcoin’s days above $10,000 will become as passé as counting its days above $1,000.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.