- Bitcoin’s price in a consolidation phase, the $19,500 mark is crucial in determining a climb to new highs.
- Institutional investors Grayscale buys up to 7,000 BTC in less than 24 hours.
- Analysts agree on Bitcoin’s price increase beyond the $40,000 mark in 2021.
Bitcoin has moved in the area between $18,500 and $19,500 for more than a week. After a period of constant rises, the cryptocurrency seems to be slowing down and consolidating in that area. Analysts advise caution as BTC prepares to close one of its best years.
At the time of publication, Bitcoin traded at $19,055 with a sideways movement (-0.44%) in the last 24 hours. In the weekly and monthly charts, Bitcoin records gains of 7.52% and 22.50% respectively. In this last period, XRP and XLM have taken the lead in the rally with gains that exceed 110%.
Trader Josh Rager expects the price of the cryptocurrency to continue to move sideways around the mark it currently holds, $19,000. A break of support at $18,500 or resistance at $19,700 could indicate a more decisive move for Bitcoin to new highs or a retreat to lower levels.
Trader Il Capo of Crypto expects more action on the Bitcoin price and a possible closing at new all-time highs. In its most recent analysis, the trader has set a target of $19,100 as a major mark before a possible rise in BTC’s price.
I really think we do this. pic.twitter.com/qybOS74nE6
— il Capo Of Crypto (@CryptoCapo_) December 6, 2020
Bybt data indicates an increase in the activity of older Bitcoin addresses. CryptoQuant CEO Ki Young Ju believes this indicates a “shift” in Bitcoin holders. Therefore, he estimates that old whales are selling their funds to institutional investors.
The above is supported by the activity of the digital asset management firm Grayscale. As the graph below shows, Grayscale has increased the purchase of Bitcoin for its GBTC fund. In the last week, the entity has bought up to 7,000 BTCs in less than 24 hours.
Bitcoin at $50,000 in 2021
In Bloomberg Intelligence’s latest monthly report, senior commodity strategist Mike McGlone predicts a price of $50,000 for Bitcoin in 2021. McGlone believes that BTC’s price will be pushed to new highs by increased institutional demand and reduced circulating supply of the cryptocurrency.
In addition, the analyst sets a support level around $10,000 with a possibility of a correction early next year and similar movements to those experienced by BTC in the last quarter of 2020. McGlone has previously stated that BTC could reach $100,000 by 2024.
$10,000 Is 2021 #Bitcoin Base for More of the Same Toward $50,000 –
A risk-off decline like 1Q's could return Bitcoin toward $10,000 support in 2021, but we believe the path of least resistance remains higher. The foundation solidified in 2020 for the benchmark #crypto. pic.twitter.com/9t3Bydxzyw— Mike McGlone (@mikemcglone11) December 3, 2020
Regarding a drop in the price of the cryptocurrency in the short term, trader CrytpoBirb has used data from the firm Santiment to propose a scenario of greater volatility. The trader believes that the drop in the percentage of Bitcoin on trading platforms is an indicator that new investors are entering the market.
Therefore, there is potential to see a significant rise in the price of BTC accompanied by an increase in daily volatility, this metric has remained relatively low throughout 2020. CryptoBirb thinks that Bitcoin can reach a target of $40,000 once BTC is able to break the current all-time high at around $20,000.
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