The dominant cryptocurrency price has hit the $21,000 – $22,000 resistance range to increase over a new high of $23,000 on December 17.
We all remember Bitcoin’s latest record high to nearly $20,000 in 2017. However, the growth saw a sharp pullback the following year that witnessed it drop close to $3,000.
According to Crypto analysts, the 2020 rally is not similar to 2017. It is being pushed by institutional buying rather than retail speculation.
Significantly, the $21,000 level was particularly essential for BTC to resume its rally in the near term. Exchange heatmaps revealed stacked sell orders at about $21,000 to $21,500. It suggested Bitcoin price had to break through to view a broader uptrend.
There is no visible resistance levels and areas with large sell orders above $22,000 in Exchange heatmaps. In the short term, this suggests the probability of Bitcoin extending its rally is high.
On-chain analyst Willy Woo announced that the dominant cryptocurrency’s Top Cap Model shows $100,000. It is a deficient target at the currency trajectory, and $55,000 is the next landmark. It would mean Bitcoin would reach 10% of gold’s market capitalization.
Significantly, the precious metals’ valuation is approximately $9 trillion. Over $50,000, the dominant cryptocurrency would start getting a relatively large portion of the gold’s market cap. It remains a powerful safe-haven asset.
Moreover, exchange order books and volume trends prove that traders have shifted their sell orders higher. They suppose Bitcoin to increase to $30,000 after the $20,000 value hit yesterday.
Bitcoin increased as big-name investors moved their assets into the cryptocurrency
The dominant has been on a tear this year. As analysts assume, it was helped by big-name investors such as Paul Tudor Jones and Stanley Druckenmiller as they moved their assets into the cryptocurrency. Additionally, tech firms, for example, Square and MicroStrategy, have used their balance sheets to purchase bitcoin.
It is essential to note that if the momentum of the futures, options, and spot markets will be maintained during the following days, the probability of Bitcoin hitting $30,000 as the first local top remains high.
According to Deribit Insights, the largest cryptocurrency options exchange research arm, institutional funds stayed bullish on BTC.
According to the Data from CryptoQuant, whale deposits into exchanges grew to levels unseen since March 2020.
Bitcoin has rallied despite growing whale deposits. Hence, the dominant cryptocurrency can still see a sustainable rally toward $30,000 as institutional buying is only starting to gain steam.