Bitcoin’s Rally Continues, and Nothing Seems to Be Able to Stop It at the Moment
Bitcoin is on its way to a new ATH.
The Bitcoin price is close to breaking the $17K barrier. Its current price is $16,945. On some trading platforms, the Bitcoin price has already crossed the $17K barrier. By the time you read this, the Bitcoin price may even be well above $17K.
As usual with this type of increase, Coinbase is showing its limits. It is becoming a habit now. An annoying habit, but a very real habit that impacts thousands of users. On November 16, 2020, when the Bitcoin price rose to $16.7K, Coinbase was down.
Given the financial power of Coinbase, this is clearly a mess. Let’s hope that Brian Armstrong and his teams will eventually fix these recurring technical problems.
Bitcoin is gradually approaching a new All-Time High
Bitcoin is currently reaching uncharted territory since the Bull Run at the end of 2017:
I’ve been wondering for several days now whether Bitcoin isn’t rightly in a “Sell High” phase. The feeling is still one of extreme greed in the market, as the Bitcoin Greed & Fear Index has been above 90 for several days now.
Every time this has happened, we have seen a sharp correction in the Bitcoin price.
There is no indication that it will be any different this time around, and the market will need to be purged, as is frequently said. Nevertheless, it seems that the Bitcoin rally is not over.
Nothing seems to be able to stop Bitcoin’s ascent to a new potential ATH at this time.
Bitcoin shows an impressive performance in 2020
Since the beginning of the year, the Bitcoin price is up +135%. Even better, since the liquidity crisis of March 2020, the Bitcoin price has increased by +340%.
The month of September 2020 had seen the Bitcoin struggle to continue to extend the series of consecutive days with a daily closing price above $10K. The $10K support had been tested several times at the beginning of the month with a drop to around $9.85K, but Bitcoin had rebounded strongly each time.
The $10K seems to have become the new baseline for Bitcoin which has been trading above $10K since July 27, 2020, 113 days.
The legitimate question on everyone’s mind is whether we will ever see the Bitcoin price below $10K again. We have the right to doubt it when we see the fundamentals of Bitcoin that have stopped strengthening. The potential correction that could occur in the coming weeks would not see Bitcoin fall as low as that.
Bitcoin price resists announcement of an effective coronavirus vaccine
The other reason for satisfaction is that the Bitcoin price has totally resisted Pfizer’s announcement on November 12, 2020, that its coronavirus vaccine was 90% effective. Many imagined that this could mean the start of a crash in the Bitcoin price, but it did not.
While the Bitcoin price did fall as a result of this announcement, it was more than measured as it stayed below the 5% drop. Quickly, the Bitcoin price began to rise again.
Since the beginning of September 2020, 3,000 BTC are withdrawn on average each day from the decentralized exchange platforms by people who are more than ever in HODL Bitcoin mode.
The miners refuse to sell the Bitcoins obtained as a reward when they mine blocks of transactions successfully. All players are confident that the current Bitcoin rally will continue.
The good news takes precedence over the potential risks for Bitcoin at this time.
Joe Biden’s election is viewed positively by the Bitcoin market
The election of Joe Biden reinforces the good news as many hope that under his administration, clear and favorable regulation for Bitcoin can be put in place. This would be the icing on the cake for a Bitcoin that is just waiting for that.
Four Major Things That Should Boost the Bitcoin Price During Joe Biden’s Presidency First Months
The next few months promise to be very exciting for Bitcoin.
Institutional investors are arriving in droves. Large companies are following the path shown by MicroStrategy and Square. PayPal is determined to become a major player in the Bitcoin world and is already starting to offer the buy/sell of Bitcoin to its users.
American banks are becoming more and more optimistic about Bitcoin and will soon be offering Bitcoin to their customers. If this is not good news from the point of view of the Bitcoin revolution as I have already explained, it is something that will strengthen the credibility of Bitcoin in the eyes of the general public.
Finally, although the Senate is expected to remain Republican, a stimulus plan will be passed in the coming weeks. It will be supported by the Fed, which intends to continue its aggressive monetary policy, as confirmed by Jerome Powell on November 5, 2020.
Under these conditions, nothing seems to be able to stop Bitcoin’s ascent towards a new ATH. We will see what happens in the days and weeks to come, but optimism is more than ever a must.
Don’t be surprised in the coming weeks if you learn that Amazon has also decided to get into Bitcoin by accepting it as a means of payment, for example, or if Apple announces that it will use 1% of its $192 billion in cash to buy Bitcoin.
This would just be the logical extension of the total change of mentality we are witnessing regarding Bitcoin in 2020.