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On Wednesday (December 30), the Bitcoin price broke through the $28,500 resistance level to set yet another new all-time high (ATH) in what is turning out to be one of the most amazing months in Bitcoin history.
According to data by CryptoCompare, last Sunday (December 27), at11:00 UTC, the Bitcoin price managed to get as high as $28,340.
Popular crypto analyst/trader Josh Rager, who is also a Co-Founder of online crypto learning platform Blockroots, as well as an advisor to several blockchain startups, said on December 27 that he thought that it would be fitting for Bitcoin to end 2020 with the “first $20,000+ yearly candle.”
$BTC
— Josh Rager 📈 (@Josh_Rager) December 27, 2020
2020 should end with Bitcoin's first $20,000+ yearly candle
Not only over $20k as price but over $20k+ in gains in a single year
Hoping 2021 will be Bitcoin's first $30k to $40k+ yearly candle pic.twitter.com/rRGc8IuxZ4
Since Bitcoin started 2020 at $7,183, this would mean that the Bitcoin price would need to close above $27,183 at the end of this month for Rager’s wish to come true. And judging by Bitcoin’s price action over the past few days, it seems highly likely that this will happen.
Crypto analyst Alex Krüger talked about the fact that Bitcoin is currently in price discovery mode:
When an asset is trading all time highs there are no reference points from past trading history to use as levels. In that case, traders look at key round numbers and fibonnaci extensions. The $BTC levels traders are looking at now are: 30K (round number and fib) and 36K (fib). pic.twitter.com/Omtt6wzlXK
— Alex Krüger (@krugermacro) December 27, 2020
Binance Co-Founder and CEO Changpeng Zhao (aka “CZ”) beautifully captured in this tweet the mood in the crypto community last weekend:
I have a meeting, #BTC breaks ATH
— CZ Binance (@cz_binance) December 27, 2020
I eat dinner, #BTC breaks ATH
I swim, #BTC breaks ATH
I sleep, #BTC breaks ATH
I do nothing, #BTC breaks ATH
Ki Young Ju, the CEO of South Korean blockchain analytics startup CryptoQuant, who believes that the Bitcoin price will reach $30,000 soon, pointed out that $28,500 seemed like a tough resistance level to break:
I'm still very bullish on $BTC in the long-term, and I think it'll break $30k anytime soon.
— Ki Young Ju 주기영 (@ki_young_ju) December 27, 2020
Please take this as a small bearish signal explaining why it's hard to break $28.5k.
Well, according to data by TradingView, at 07:01 UTC on Wednesday (December 30), on Coinbase, Bitcoin’s price did manage to break though the $28,500 level to reach $28,557.
Bitcoin Magazine sent out this interesting tweet earlier today:
$29k is the next victim. pic.twitter.com/QISTVaK8GG
— Bitcoin Magazine (@BitcoinMagazine) December 30, 2020
So, how high can we expect the Bitcoin price to go in the short term?
One of the many people in the Bitcoin community who thinks that Bitcoin’s price could reach $30,000 as early as the end of this month is Tyler Winklevoss, Co-Founder and CEO of crypto exchange Gemini.
27k #Bitcoin on the 27th. If we go a grand a day, we’ll breach 30k by the new year
— Tyler Winklevoss (@tyler) December 27, 2020
The CryptoQuant CEO said yesterday that investors should buy any dips below the $26,000 since in the current environment, it’s hard to see Bitcoin falling below $25,000.
I think below $26k is the BTFD area.
— Ki Young Ju 주기영 (@ki_young_ju) December 29, 2020
Very low chance of nuking below $25k considering the current market situation.$BTC
Earlier today, Mira Christanto, Asia Advisor at Messari, summarized in one tweet J.P. Morgan’s current view of Bitcoin’s current price action:
JPMorgan: Basically… #Bitcoin is expensive but we don't see it going down. #NumberGoUp pic.twitter.com/K1lL8BkTVj
— Mira Christanto (@asiahodl) December 30, 2020
Rager offered the following tweet to summarize’s Bitcoin’s price action during the course of 2020:
Year in review $BTC
— Josh Rager 📈 (@Josh_Rager) December 30, 2020
After a push from $7k to $10k, Bitcoin experienced a Black Swan drop to $3ks
Quick recovery that took 3 months to hit $10k
Then primarily sideways as alts/defi exploded mid-year
Followed by an epic close with the final three months hitting a new ATH $28k+ pic.twitter.com/spHYVowrHy
As for high Bitcoin’s price could go within the next decade, there are more than a few Bitcoiners who believe that based on how small Bitcoin’s market cap is at the moment compared to gold’s market cap, as the digital gold narrative becomes more widely accepted, it would not be unreasonable to expect the Bitcoin price to reach $400,000 to $500,000 within the next decade.
#Bitcoin’s market cap is 500 billion. Gold’s market cap is 9 trillion. That’s atleast 18x appreciation from here when bitcoin disrupts gold.
— Tyler Winklevoss (@tyler) December 29, 2020
Featured Image by “CraigL” via Pixabay.com
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.