Bitcoin is nearly 8% lower than the magical $20,000

During the last 24 hours, the world’s dominant cryptocurrency reached an intraday high of $18,466.14, which is nearly 8% lower than the magical $20,000. However, investors in different countries, for example, Russia, Brazil, Argentina, and Mexico, have already witnessed their BTC holdings reached a record high in their local currency. Even Bitcoin’s market cap has touched a new record high, exceeding the high of December 2017.

Furthermore, with institutional investors finally arriving in herds, it appears it is only a matter of time before the dominant cryptocurrency finally overtakes $20,000 and hits a new record high.

Mexico’s second-richest man, Ricardo Salinas Pliego, recently stated that he had invested in Bitcoin. He said that  10% of his liquid assets are held in the digital asset.

Furthermore, existing investors have also added to their holding. For example, Mike Novogratz, Galaxy Digital chairman, and CEO announced that he had bought BTC at $15,800 as he expects a rally to $65,000. According to Novogratz as new buyers coming in, the limited supply will not be enough.

Epidemic was the main factor that influenced investors to buy Bitcoin

Additionally, the steady institutional inflow has resulted in Grayscale Investments BTC holdings climbing to more than 500,000 Bitcoin. Besides, an annual survey from the company announced that nearly 38% of the respondents had purchased BTC in the last four months. Most investors (63%) reported that the Covid-19 epidemic was the main factor that influenced their decision to buy the dominant cryptocurrency.

After today’s rally, many investors think whether Bitcoin will continue its uptrend or correct from the current levels.

The world’s largest cryptocurrency’s momentum was robust in the past two days, and while investors expected that $17,200 would serve as a major resistance, the rate fell. But, Bitcoin has been rudding hard since early October.

If Bitcoin’s price reaches the 20-day exponential moving average, which equals $15,528, placed just over the 38.2% Fibonacci retracement level, it may be viewed as a positive sign. However, if the price does not correct, a range-bound action among $16,500 – $18,500 will be positive.

Furthermore, if the momentum drives the Bitcoin pair to new all-time highs without any pullback, the chance of the record highs sustaining will be reduced. Now, a correction could be vicious because, until $12,500, there is no major support.

Additionally, RSI has been trading among 70 – 84 for a month, which explains that the trend is strong but also overextended.