Bitcoin Price Surges Towards $27,000 in Latest Rally

A record high of $26,940 has been reached by Bitcoin a few hours ago according to Tradingview.com. The move has added another 7.5% to the price of the king of crypto over the past 24 hours.

Currently, prices had retreated slightly to trade at around $26,800 which is not far off the recent high and signs are still indicating that there is more bullish momentum which could push prices up to a whopping $30k or beyond.

bitcoin price
Chart – tradingview.com

Analyst, Josh Rager, put it simply;

“Kind of wild that Bitcoin is closer to $30k than $20k now,”

Fellow analyst ‘Bitcoin Jack’ noted that current levels could develop a potential overthrow resulting in a heavy correction.

Reasons For Big Bitcoin Move

From a fundamental perspective, there have been a number of drivers of momentum for this epic rally which has double Bitcoin’s price since the beginning of November. The charts may look like they did in 2017, but things are very different this time around.

Kraken’s Dan Held has labeled it a ‘supercycle’ confirming that things are different during this cycle.

Held quoted Satoshi Nakamoto who wrote this almost a decade ago;

“As the number of users grows, the value per coin increases. It has the potential for a positive feedback loop; as users increase, the value goes up, which could attract more users to take advantage of the increasing value.”

He added that never before has Bitcoin had such strong fundamentals against a macro backdrop that highlights exactly why the asset is needed.

The Covid effect has been clearly observed also and Bitcoin survived that despite a massive plunge in min-March. It has recovered to gain 570% since then outperforming every other traditional asset.

Store of Value

While Bitcoin recovered, governments across the world engaged in unprecedented money printing, he added, which further fuels a safe haven narrative that has proven to be very real for those that had faith in Bitcoin.

“Bitcoin was special purpose built to be a store of value in a world where you can’t trust your government or bank. Those moments don’t come around often though, like the 2008 financial crisis. COVID brought Bitcoin’s value into focus for the world. And because of that, a new market participant started to buy Bitcoin: the institutions.”

Held continues to highlight the big institutional players that have been snapping up BTC in the latter half of 2020. They’re not likely to be selling much of it either which further adds to that supply and demand narrative.

Those epic price predictions made earlier this year may not be that far away after all.

Source: Crypto Potato