Cryptocurrency Bitcoin is resisting a push to break the US$20,000 barrier, falling from a tantalising high of more than US$19,500 just five days ago.
Bitcoin is currently trading at US$18,171 (A$24,421), having experienced a massive increase in value during the COVID-19 pandemic.
Many see the $20,000 barrier as a major indicator of Bitcoin’s legitimacy, as it would mark a new high since the infamous boom in 2017.
Last week Gunnar Jaerv, COO of First Digital Trust, said it was unrealistic to expect a perfect upward trajectory for any asset.
“Bitcoin has seen teasing the $20k level for a week now. This is a good sign, we see some bullish movements and no significant pullbacks that we saw in 2017,” Mr Jaerv said.
“Price seems to be consolidating between 19k and 17k.
“If we see a consolidation in this area in the coming weeks, we could also see the possibility of a break above 20k as volume of Bitcoin increases to continue an upward momentum.
“We have to remember that no sustainable asset class will have perfect projection going up.”
A week ago a number of prominent investors and analysts believed the long-term trajectory for Bitcoin is far higher than US$20,000.
“This rally is driven by smart and institutional money and not built solely on retail over-speculation,” Guy Hirsch, managing director at brokerage and trading firm eToro, said.
“So many more individuals and asset managers are now buying in.”
The epic rise in Bitcoin has also fuelled even more dramatic spikes in smaller cryptocurrencies such as Ethereum, XRP, Litecoin and Stellar as of late. That may continue.
“Bitcoin hitting a new all-time high … will likely spur a tidal wave of retail investment that pushes Bitcoin much higher in short order,” Denis Vinokourov, head of research at digital assets prime broker Bequant, said.
“However, it is unlikely that this inflow will be limited to Bitcoin only.
“The ease of access to other assets is much more straightforward than what it was during the last bull run.”