The first and largest cryptocurrency by market cap, Bitcoin (BTC) traded near $18,500 for the first time this year on November 18. The $18,500 level was once regarded as a heavy multiyear resistance as prior attempts to break past this key level was often met with rejection.
In a clean breakout, Bitcoin (BTC) found stability above $18,000 to reach a new high at $18,830, surpassing the previous high of $18,488 from Nov. 18. Bitcoin is certainly on the run with its frequent printing of fresh highs.
Although analysts are divided on BTC’s future price trend, one thing remains sure-2020 will likely go down as the year that major Bitcoin narratives changed, especially among institutional investors who have long cast doubts about cryptocurrencies. Investors like Paul Tudor Jones and Stanley Druckenmiller have expressed support for BTC, while major banks like Citigroup and JPMorgan have spoken positively regarding BTC’s pattern of growth.
Speaking on the market’s present strength and prospects, Tom Lee, co-founder of Fundstrat Global Advisors, believes BTC has just begun considering the halving event which occurred in May 2020. He further stated that 2021 will be the year of fireworks. This he said:
“The halving happened this year, which of course historically is good for the price, but history also says that the year following the halvenings is much more important, But in 2021 I think Bitcoin could be the year of the fireworks, so if people are interested, they really should realize that the best is probably yet to come.”
BTC/USD Daily Chart
Bitcoin is presently at $18,568 up by nearly 5% on the day.
What Will Be the Next Ceiling for BTC in This Extended Bull Run?
Following Bitcoin’s breakout past $18,500, analysts have said that the market sentiment around Bitcoin is generally optimistic. Guy Hirsch of eToro exchange stated it would be surprising to see Bitcoin not testing the all-time high soon. He stated that the positive factors such as the support for BTC from PayPal and CashApp coupled with rising institutional adoption will buoy BTC.
A pseudonymous trader “Benjamin Blunts” said this rally “should be the one to take us to $20k and back to all-time highs.”
Five-year chart Google search interest in “Bitcoin.” Courtesy: Google
It seems as if generally, analysts believe Bitcoin will ultimately retest its $20k ATH which is less than 10% away or $1250 away. They are however divided on maybe a correction will happen first before it hits $20k or after it reaches this peak.
However, some analysts believe BTC might surpass $20k in this extended bull run. Philip Swift, analyst and the creator of Lookintobitcoin.com believes BTC price is on track to achieve $22,000. this he said:
“1yr HODL % still really high? Yep. Bitcoin being rushed off exchanges? Yep. Is funding still neutral? Yep. Institutions still buying? Yep. Cool, See you at $22K in a few weeks…”
Considering different trends Bitcoin has seen since the March carnage, Guy Hirsch believes there are likely chances Bitcoin will test $25,000. If Bitcoin surpasses $20k, it would imply that BTC will seek to explore a new ceiling. Hirsch highlighted the $25,000–$30,000 range as the potential top for Bitcoin in the near term.
Bitcoin bull and investor, Mike Novogratz of Galaxy digital stated Bitcoin will surpass $20k to reach $65k due to the ‘network effect’, a combination of low supply and “tons of new buyers. This he said “I bought more BTC last night at 15,800. It’s going to 20K and (then) To 65K,”
However, one thing remains-it’s nearly impossible to predict BTC’s next top until it peaks at a certain level as there is no longer any historical context when it surpasses $20k. Another variable is that retail investors are likely to enter after BTC breaks past $20,000, which would add to the high level of interest and fear of missing out, or FOMO, that BTC is already seeing.
Image Credit: Google, Shutterstock