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.
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.
$BTC $26.6 to 30K is a region in which a potential overthrow could develop, only confirmed by falling below the diagonals again, leading to a large correction
Without overthrow, price will continue scarily steep towards 36-42K it seems
Current PA similar to March-May 2017 pic.twitter.com/Pq7EtgWDKJ
— //Bitcoin ack (@BTC_JackSparrow) December 27, 2020
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.
1/ Why Bitcoin may be going through a “Supercycle”
This time is different: COVID, Gold 2.0 narrative, institutional herd, and ease of use have set a new stage.
Instead of a normal bull/bear cycle, Bitcoin would break convention and enter a “Supercycle”
— Dan Held (@danheld) December 26, 2020
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