Bitcoin Breaks $22.000 Just 5 Hours After Recording a New ATH

Free Bitcoins: FreeBitcoin | BonusBitcoin

Coins Kaufen: Bitcoin.deAnycoinDirektCoinbaseCoinMama (mit Kreditkarte)Paxfull

Handelsplätze / Börsen: Bitcoin.de | KuCoinBinanceBitMexBitpandaeToro

Lending / Zinsen erhalten: Celsius NetworkCoinlend (Bot)

Cloud Mining: HashflareGenesis MiningIQ Mining


With just two weeks left before the end of 2020, Bitcoin seems to be giving hodlers a reward for the other terrible 350 days in which the world had to experience everything from fears of a new world war, massive fires in Australia, a global pandemic that caused markets to collapse, and the random appearance of some weird mysterious monoliths for no reason at all.

CryptoPotato recently reported that Bitcoin broke the $20,000 mark, raising the new ATH to over $21,000. “Bitcoin continues with its price discovery and it’s particularly interesting to see where it would head up next.” the article said. Well, it seems “next” means “up” —at least in the short term.

After breaking the $21,000, the Bitcoin bulls didn’t want to know about supports and pressed for new horizons. In just 5 hours, they managed to climb to $22,000, bringing the total marketcap of the world’s largest crypto from $360 Bn to about $409 Bn in one day.

Bitcoin’s total marketcap. Image: Coinmarketcap

This would be the largest market cap in Bitcoin’s history, and it marked the moment when ALL the BTC hodlers in the world could say they had made a profit.

At the time of writing, the price of BTC is $22117 per token.

|2ca782b911390d6db3ecc280463f696f|

From a technical point of view, Bitcoin is in uncharted territory, but some indicators look optimistic. The MACD on 4 and 24 hour candles shows a cross that could indicate a change towards an upward trend in the coming days.

The RSI is high, so caution is advised; however, it is not yet at the extreme levels shown on previous occasions, so it could still give room for a price increase before the bulls want to take a break.

The price of Bitcoin in 1 day candles. Image: Tradingview
The price of Bitcoin in 1 day candles. Image: Tradingview

For long term hodlers, the first strong support in case of a possible correction is near $17950 according to the Fibonacci retracements and $19700 according to the bullish channel support line that has been respected since October. This same channel puts Bitcoin between $21,000 and $25,000 by the end of the year.

FIbonacci Retracements on the BTCUSD chart. Image: Tradingview
FIbonacci Retracements on the BTCUSD chart. Image: Tradingview
|2aad4a5bfde6cabd31a12e2780732389|

Many factors could explain the fundamentals behind this bullish run, with the Bitcoin halving as one of the most important to consider.

Besides the token shortage caused by institutions’ appetite, Bitcoin’s own algorithm lowered the supply by 50%, and the markets could be feeling the effects. The Stock-to-flow model looks pretty accurate in this regard, although its prediction of $30,000 by the end of the year might be a bit too optimistic.

The Stock to Flow Model. Image: Lookintobitcoin
The Stock to Flow Model. Image: Lookintobitcoin

 

Another major thing to notice is the  recent wave of institutional investments and new products oriented to Bitcoin investments.

Square started the bull run when it announced a $50 million investment in Bitcoin and PayPal stepped on the gas when it announced support for buying and selling cryptocurrencies

But the “crypto god” has undoubtedly been Michael Saylor, CEO of MicroStrategy, who went from having just another successful company, to be the discussion topic on many debates in the crypto-verse after his massive investments in Bitcoin. He currently owns about half a billion dollars in Bitcoin, with intentions of doubling his BTC stash.

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

Free Bitcoins: FreeBitcoin | BonusBitcoin

Coins Kaufen: Bitcoin.deAnycoinDirektCoinbaseCoinMama (mit Kreditkarte)Paxfull

Handelsplätze / Börsen: Bitcoin.de | KuCoinBinanceBitMexBitpandaeToro

Lending / Zinsen erhalten: Celsius NetworkCoinlend (Bot)

Cloud Mining: HashflareGenesis MiningIQ Mining

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close