4 December 2020
Bitcoin has continued to soar higher in November and is currently trading above $18,000. This level is the best attained since early 2018, and this suggests that the market is almost at its 3-year highs.
Over the past few months, significant events have occurred in the crypto world. One may wonder about the possibility of Bitcoin going high by the end of this year and even at the beginning of next year. However, analysts such as Michael Novogratz of Galaxy Investment Partners suggest that it’s possible to have a broad rally ahead predicting the price. Since March lows, Bitcoin had rebounded exceedingly when they traded below $4,000. The current price is trading around $18,000, and this is an impressive and stupendous recovery.
In this article, we approach a technical analysis to discuss the external factors behind Bitcoin’s driving force towards its unit worth $20,000.
PayPal Partnership Gives Bitcoin A Giant Stride
In its struggle with overwhelming market volatility geared by global events such as Pfizer and BioNtech Covid-19 vaccine testing, Bitcoin sits comfortably above $18,000 since this month, and it has moved upwards at a slow and steady pace.
Trading below $4,000 in March, Bitcoin continues to push up towards $18,000. This implies that BTC trading is at its maximum boost since January 2018, about a 3-year-high as it’s current strength suggests it has truly overcome the downtrend, which has been driving down its price for more than two years now.
PayPal announced the provision for its customers to hold, sell, and buy cryptocurrencies via its platform. We are, indeed, witnessing a greater industry price acceptance of cryptocurrencies, according to the chief market strategist, David Jones. In recent times, we have witnessed a powerful march in the Bitcoin value; however, it was not long-lasting. We have also witnessed other people realizing a loss, taking profits, or cashing out.
The area was a stumbling obstacle. Recently, the value of bitcoin seems to have assumed a stable level above $18,000. This will unfailingly serve as a base for even greater levels in the nearest future. An occurring rally above $18k enables us to visualize the possibility of an even higher BTC price racing towards and beyond the hit, $20,000.
Bitcoin Value Takes New Highs As Bitcoin Cash Hard Forks Into Two
Bitcoin cash, hard forked once more with a newly formed faction termed “Bitcoin ABC”, giving BTC an even greater boost. But what happens when an entity splits into two? In the case of the faction, Bitcoin ABC and BTC, the market decided their fate. The miners voted with their work indicating the decision to remain with Bitcoin Cash. Most of the miners continued to do the much-needed work of increasing records upon which the blockchain protocol has its base and continued to provide hash power to BTC. Unfortunately for Bitcoin ABC, they were unable to win the miners over.
Upcoming Liquidity Pump
Galaxy digital boss, Michael Novogratz, commented recently about the great potential that Bitcoin possesses, which will allow more possibilities of increased growth and continuous rise due to a staggering influx of retail investors and global liquidity pump. Additionally, “Bitcoin still has a lot of retail interest in it,” explained the CEO, Galaxy Digital, indicating that stock investors are going back to BTC and gold.
The CEO, Galaxy Digital, expects BTC value to reach $20k by the end of the year. His price prediction also correlates with many others, including an analysis drafted by Crypto Research Report.
The billionaire investor affirmed that most of his investments are in silver, gold, and most especially, Bitcoin, confirming that about 20% of his net worth emanates from BTC, he said, “I want it to go a lot higher.”
Novogratz continued to emphasize that he has begun to witness institutional investors moving into BTC. Many others have also confirmed witnessing a greater demand for cryptocurrency from institutional investors. Grayscale investments commented that eighty-four percent of inflow into cryptocurrency investment products come from institutional investors in the second quarter. Additionally, Paul Tudor, who manages the Famed Hedge Fund, has about two percent of his assets in Bitcoin.