The world’s largest cryptocurrency, Bitcoin, increased to all-time highs of more than $24,000 from $3,600 lows. In 2020, Bitcoin surprised analysis like never before.
Prognosticating Bitcoin’s next move is very complicated, as there has never been more demand for an accurate BTC price model. Analysts look at how the best businesses fared this year and what is worth following as 2021 gets started.
Significantly, 2020 indeed was the year in which the stock-to-flow Bitcoin price model became extremely profitable.
The dominant cryptocurrency, Bitcoin, has spearheaded the current crypto bull run. Notably, the United States Securities and Exchange Commission has previously warned that Bitcoin is not a security. Besides, the regulator’s current lawsuit against Ripple XRP is questionable to stop the institutional inflow of money into BTC.
However, a few altcoins may be at risk of facing a similar fortune as Ripple could face selling pressure. Due to a change in sentiment, retail investors may exchange some of their altcoin holdings into Bitcoin.
Furthermore, even retail investors who plan to spend their stimulus checks for getting crypto-assets may prefer BTC over altcoins.
Additionally, the institutions have been pumping money into the dominant cryptocurrency at an abnormal pace. On Tuesday, Grayscale continued its buying spree and added 12,319 BTC. That indicates Grayscale gobbled up nearly 44% of all the newly mined Bitcoin in a month or throughout 28,000 Bitcoin.
Moreover, BTC’s supply cannot keep up with the institutional demand. If retail traders also become net buyers, the price will increase further.
If the bulls can lift the price above $24,302.50, the BTC could hit $26,958
Usually, In a strong uptrend, the corrections last for around one to three days. The world’s largest cryptocurrency ended the session in the red on December 20 and 21. However, the price turned up on December 22, and the bulls are currently trying to continue the up-move.
Additionally, if the bulls can lift the price above $24,302.50, the BTC pair could hit $26,958. Besides, the upsloping moving averages and the relative strength index (RSI) close to the overbought zone imply bulls are in control.
If the bears keep the overhead resistance level, the pair may consolidate $21,934.83 – $24,302.50 before starting the next move.
However, if the pair declines and breaks below $21,934.83, a fall to $20,000 is likely. The position between $19,500 and $20,000 is crucial because if it fails. The pair may fall to the 50-day simple moving average, which is $18,529.