“Before investors look to the next bull run, we need to see the price remain above $12,000 for an extended period of time," said Simon Peters, analyst at investment platform eToro. “Then investors should look to $14,000 as the next target."
Though Bitcoin’s remained volatile all year -- often moving up when U.S. equities do and selling off during risk-off stretches -- it’s been buoyed by a string of positive catalysts in recent weeks. Bulls cite greater institutional acceptance, for instance, with Fidelity Investments launching a Bitcoin fund and a couple of public companies investing in the coin.
“We see a significant increase in institutional players entering the crypto market," said Eric Demuth, co-founder and chief executive officer of Bitpanda. “There is a lot of capital available that is not only going into the traditional financial market."
This week, many crypto fans pointed to a panel hosted by the International Monetary Fund during which Federal Reserve Chairman Jerome Powell said the U.S. central bank is evaluating the costs and benefits of a digital currency.
Bitcoin last traded above $12,000 in September though it didn’t hold above that level for long. September was its worst month since March, with the coin losing more than 8%.
Though peer coins tend to move in tandem with Bitcoin, many fell during Tuesday’s session. Dash and Monero each lost more than 5%.