Bitcoin’s Holiday Panic-Buying Insanity: New ATH’s Makes BTC Over Half a Trillion-Dollar Asset
Bitcoin multiple ATHs breakout had BTC trending worldwide. With no sellers to be found, it is hard to find the top, it’s all about supply and demand.
December of 2020 is tuning out even more explosive than the 2017’s.
The first ten days of the month have been of correction which if we look back now BTC was just getting ready to shoot up into the sky.
It all started the mid of December when we traded at about $18,000 that took us straight above $24,000 in a week. For the next few days, from there, BTC traded between the $22k and $24k range.
Then on Christmas, we saw $25k on 25th then three more levels were hit in three successive days.
Bitcoin futures contracts for June are already trading above $30k on some crypto derivatives platform.
On Sunday, a new all-time high was set at about $28,260 but this much uptrend led to a correction that took us as low as $26,525. As of writing, BTC/USD is trading around $27,300.
The weekend’s euphoria had BTC trending worldwide from Italy, Belgium, Netherlands, Israel, Spain, France, Singapore, Australia, Austria, Portugal, Sweden to New Zealand, and the UK.
Weekly momentum indicators at levels not seen since 2012 and 2013, absolutely historic way to end 2020 🚀 pic.twitter.com/RH0EvY1isw
— //Bitcoin 𝕵ack 🐐 (@BTC_JackSparrow) December 27, 2020
These gains over the weekend also resulted in making Bitcoin a half a trillion-dollar worth asset. At a price level of $55,555, Bitcoin’s market cap will finally hit the $1 trillion mark.
“Going to 13 figures could result in big money pouring in, which could happen in Q1 of 2021”, said DoveyWan, a founding partner at PrimitiveCrypto.
While $222,222 per BTC will put Bitcoin’s market cap at half of gold's, BTC’s price at half a million will bring us “gold flippening moment.”
And all of this, “is totally imaginable in this cycle,” she added.
Retail Interest Gaining Strength
Even the retail interest is returning to the market, although nowhere near the top. For now, interest for Bitcoin on Google trends has jumped to February 2018 levels.
Although some may feel that increased adoption of the world’s largest digital asset means the increased interest won’t reflect in Google trends this year, that’s not true.
As Wan noted, “It’s not abt generic awareness, it’s about getting the latest.”
“Asia FOMO is not even started yet, may kick in when we hit 30k,” she added. “The quieter is for pre-50k, the greater the bull run will be.”
2017 vs 2020 – retail interest hasn't surged back pic.twitter.com/fnPHSYEbwr
— skew (@skewdotcom) December 27, 2020
What’s Next Short-Term?
No one knows where Bitcoin is going next, it’s just wild guesses at this point with no sellers to be seen in the market.
Using the Fib levels to try and find the top of this run-up, one trader gets at a round figure of $30,000 that may provide us with the much-anticipated pullback to $20,000.
Another trader thinks that “all chance of a 20k retest are out the window, it would be too deep to be a w4 IMO,” and only sees the retest of $24,963 or $23,642.
“I’m not seeing any conviction on the offer side under $30,000. Panic-buying is accelerating,” is what Bitcoin proponent Max Keiser sees.
Overall, there is no top as it is all about supply and demand. And for Bitcoin “Supply will forever go down. Demand has been increasing exponentially due to macroeconomic conditions, which are in play for the foreseeable future,” said trader and economist Alex Kruger.