The Road to 20k. Everyone Gets Rich
Despite Covid-19, US turbulent 2020 Elections, and all of the other crazy occurrences in this year, bitcoin is trading +153% year-to-date. The massive gain, initiated in October, makes us question whether the king will break the all-time high, 20k. Will we all become incredibly rich?
The Final Push
If we had to describe bitcoin with one word, it’s resilience. Bitcoin has overcome every challenge that 2020 has thrown on its path. All asset classes were drastically affected by the pandemic-driven sell-off, but the king was the first to recover. Equities remain fragile, but bitcoin has shattered all significant key price levels, except for one, $20,000. Let’s take a look at what drove bitcoin to the moon.
The Road to 20k
Volume is a great indicator to get an idea of where bitcoin is headed because if there is more interest in bitcoin (higher demand), the price can continue upward. Even though volume levels are not at 2017 levels, the On-Balance-Volume shows that there is a lot of buying pressure behind bitcoin, and if the indicator is slanted upward, the journey to 20k continues.
It’s been almost 3-years since bitcoin traded around these levels (above 18k), while the king was struggling to get back, the crypto market matured and thousands of new blockchain projects emerged. Bitcoin gained experience as it matured, and volatility decreased. With lower, overall, volatility bitcoin can continue to gain without the risk of major setbacks but beware of the giant because it’s currently moving around $775/day. Don’t get caught on the wrong side of the trade.
December 2020, bitcoin 20k?
Bitcoin hardcore followers (Maximalists) claim that this is the year, but others are paralyzed with fear of an overheated (overbought) engine. It’s too soon to define bitcoin’s year-end outlook, but one thing is for sure, bulls are in command. Bullish momentum is strong and we are in an overextended market, not overbought. As long as bitcoin remains above its 8-Day exponential moving average, the sky is the limit. Trade safe and define your entry points.