Bitcoin (BTC) is fulfilling one of its lifelong dreams of becoming a world acclaimed asset as its price breaks past the $20,000 resistance level on December 16, ushering in a massive bull run afterward. For about three years now, Bitcoin has taken the $20,000 price level as its resistance and got close to breaking past back in December 2017, when it traded above $19,000.
The highly volatile markets at the time and the ecstatic behavior of the market bulls sparked a lot of selling spree which pushed the price down at the time. Bitcoin since the 2017 bull market has struggled to maintain a steady price level, with much pushbacks seen at price levels around $10,000.
The COVID-19 pandemic (Coronavirus pandemic) back in March ushered in a global market crash that also affected the cryptocurrency market with Bitcoin taking the biggest hit. At the time, Bitcoin traded for as low as $5,300 in mid-March this year. However, as the pandemic rages on, the need for a more flexible means of transaction arose and all eyes were on Bitcoin and altcoins to bridge this gap, and with much embrace, BTC began regaining its relevance and its price gradually began soaring.
Another crucial case that helped Bitcoin grow in this time frame was the devaluation of the major fiat currencies, and the embrace of Bitcoin as an alternative store of value. In addition, the COVID-19 pandemic caused a lot of job losses, and the resultant hardship prompted the rollout of COVID-19 induced stimulus packages, a move that was achieved with the printing of more fiat currencies.
As expected, the excessive printing of money brought about inflation, and correspondingly, Bitcoin saw increased adoption as a hedge against inflation as investors gradually shun Gold, the asset that has played the role for decades. These are among the visible tickers that prompted the growth of Bitcoin in the past three quarters.
The massive entry and accumulation of Bitcoin by institutional investors have also contributed positively to sending the price of Bitcoin.
Among these investors include MicroStrategy Inc, Square Inc, and the online payment giant amongst others, while many of the institutional investors who took a position in Bitcoin in the past months did so primarily for profit-taking, many actually helped influence the growing buy-up of the coin which further sends the price upwards.
The number of whales with Bitcoin reserves is skyrocketing and with most of them HODLing and going long on Bitcoin, the coin benefitted with the price’s bullish run.
The price of Bitcoin (BTC) is currently hovering around $23,000, as the premier digital currency continues on its bullish surge. Per the technicals, as seen on the TradingView, the short term Moving Average of Bitcoin is bullish and thus, shows that the coin may likely continue its upward momentum for the next couple of days.
Market analysts are however making a case for a more ambitious price target beyond $30,000 which now forms the current major resistance point. According to Ian Balina, the Founder and CEO of Token Metrics, an AI-driven digital asset research company, Bitcoin is in uncharted territory and price surge may go beyond $30,000 to $50,000 in the near term. Per his words:
As the world celebrates the new milestone Bitcoin (BTC) recorded in its price history, it should be noted that the markets are unstable and movement could push either upward, or downward.