December has seen Bitcoin in one of the most bullish states since its end of year rally begun. The leading cryptocurrency crossed $20,000 this month, a groundbreaking price mark that the entire space had been expecting.
After surpassing its 2017 high and setting a new record this year, the expectations going forward are more bullish than ever. Bitcoin’s recent low of $22,078 was followed by a surge to $23,800, where Bitcoin was facing resistance before revisiting prior support at $22,200.
A downward price movement is certainly sending the big bull below the $22,000 mark and should the bears get the upper hand, Bitcoin could slip all the way down to $20k. A quick price correction above could see Bitcoin retest previous resistance at $23,800 and easily breakout above $24,000.
Bitcoin crossing $20,000 had initially seemed like a need, as analysts expressed doubts about Bitcoin’s ability to hit a new all-time high, and more importantly maintain that price. The latter was especially important because Bitcoin had historically never held above new highs for too long.
There has also been a swift bear trend sending the cryptocurrency below new highs. This market trend was said to reflect Bitcoin’s current stage; the market was not moving organically and at the core of every bull run, were uncertain buyers who would sell in order to escape potential losses.
Now with Bitcoin making an up climb and rewriting the record books, it is possible that organic market activities are beginning to take place more than ever before. This is asides from institutional investors, which is certainly very bullish and has played a massive role in Bitcoin’s price movement. General market sentiments from independent investors seem to be largely positive for the future and even as some investors are securing the end of year returns, as they cash out on their investments, the following year is expected to become one of Bitcoin’s most bullish.
This year’s market activities are serving as significant pointers to where the market is headed. With the second wave of the global pandemic kicking in and inflation brewing in the United States and other countries in the world, Bitcoin could certainly rake in more users.
Meanwhile, technical indicators are also signaling a bullish party in 2021. On-chain analytics indicators, per our previous reports, reveals that Bitcoin is eyeing $200,000, analysts and traders are also predicting a price within that range. However, the market is starting out small, with hopes that Bitcoin hits $25,000 in the next few weeks.
