In Summary
- On Nov 30, the coin had retested its all-time high in several exchanges, roaring to $19,833 before recoiling back but steadying above $19k.
- At the time of writing, the Bitcoin price was up six percent on the last trading day and has been steady in the last hour.
- Notably, support and resistance levels lie at the coin’s all-time highs of $19,891 (Coinbase data), and $16,200, or last week’s lows.
Bitcoin (BTC) Price Overview
The uptrend is firm, and buyers are in control. Aforementioned, the path of least resistance has been set.
For aggressive traders, every low could be a loading opportunity. There may be further gains above Bitcoin’s All-Time highs set in the tail end of 2017 only if this week’s uptick in trading volumes continue.
Ideally, for buyers to be comfortably in charge, the break above $20,000 ought to be with equally high trading volumes surpassing the averages printed when the Bitcoin price sunk to lows of $4k in mid-March 2020.
In that eventuality, chances of the BTC price rallying to new highs of around $21k or even $31k will be highly likely.
Bitcoin (BTC) Market Movers
Behind the rapid shift in Bitcoin prices is the realization that the digital asset is emerging as an alternative store of value asset for retailers and institutions.
Yesterday, it soared to a new 2020 high:
In September, the NASDAQ-listed MicroStrategy bought $475 million worth of Bitcoin to become the largest public company holding the digital asset for strategic investment reasons.
Their decision has paid off.
Since their announcement, the Bitcoin price has nearly doubled, earning the public company over $100 million in profits.
Meanwhile, its CEO, Michael Saylor says Bitcoin is a shield against inflation. Additionally, its underlying network is “the world’s best treasury reserve asset & the emerging dominant monetary network. It is the solution to the store of value problem faced by every individual, corporation, & government on earth.”
Because of the inevitable inflation due to endless printing money, Rick Rieder, the Chief Investment Officer of BlackRock said Bitcoin may end up replacing gold. BlackRock has $7.4 trillion of assets under management as of Q4 2019.
In the meantime, Thomas Fitzpatrick thinks the Bitcoin price could rally to $318k in the next year based on technical analysis on the weekly chart.
In a newsletter meant for institutional investors, the analyst said the current state of Bitcoin price has some resemblance to the gold market in the 1970s.
Also, Antony Pompliano said the prevailing macro-economic conditions are rocket fuel for Bitcoin prices. Within a year, he adds, BTC may rally to $100k.
Paul Tudor Jones, a billionaire hedge fund manager, chimed in saying the fixed supply of Bitcoin is the reason why investors are doubling down:
Bitcoin Price Prediction
The Bitcoin price added six percent on the last day, reversing losses of last week.
From the daily chart, the uptrend is solid. Buyers are in the driving seat.
After the Nov 30 rally to new 2020 highs, odds of buyers pushing above the liquidation level is likely.
A confirmation of Nov 30 gains–and a solid close above Nov 24 highs, could provide the necessary foundation for further gains towards $21k or better in Dec 2020.
Pasting a Fibonacci retracement tool between September and November 2020 trade range reveals that prices not only bounced off from the middle BB but from the 38.2 percent Fibonacci retracement level.
It hints of strong upward momentum. Also, it is possible for the Bitcoin bulls to above last week’s high and register new all-time highs.
Losses back below $16,100 and the 38.2 percent Fibonacci retracement could see the Bitcoin price fall back to within the $12.5k and $13.5k zone marked by the 61.8 and 78.6 percent Fibonacci levels.
Disclaimer: Opinions expressed are not investment advice. Do your research.
