3 January 2021
Bitcoin resistance levels continue to smash new highs as we bid adieu to the most challenging yet historic year of 2020. The world’s largest cryptocurrency has moved past $29,000 levels to hit its new all-time high of $29,244 while moving past the $540 billion market cap.
This has been a historic bull run given previous key resistance levels, surging more than 54% and on path to register its strongest monthly performance since May 2019. On the weekly charts, BTC has surged more than 25% and, if it continues at this rate, will see it touching $30,000 levels by the final hours of 2020.
The latest Bitcoin resistance level clearance comes on the backdrop of massive institutional inflows coming into BTC over the last week. As we can see in the chart below by Bybt.com, the Grayscale Bitcoin Trust (GBTC) holdings and institutional inflows have continued to surge consistently over the last month.
The chart also clearly shows that institutions have been making aggressive BTC purchases at every rise in the BTC price. As per the latest data, GBTC holds more than 600K Bitcoins whose valuations are now above a whopping $17 billion.
In another interesting data, Bitcoin whales have started depositing fewer BTC than earlier, on the exchanges. This is a bullish indicator as it means that the BTC supply on exchanges is dropping and thus less profit-booking by Bitcoin (BTC) whales.
While Bitcoin has been on an unprecedented bull run off-lately, there’s every possibility that Bitcoin might peak-out in early 2021. As per Mark Newton, founder and president of Newton Advisors, we will likely see some profit booking.
Speaking to CNBC, Mr. Newton said: “It is still quite bullish on an short term basis given that it just broke out to new all-time highs. I think we have a ways to go. Near term, my cycle composite shows us peaking out in early January.
All those years where we had a stellar Q4 we reversed course in trend back in late December, early January, and actually went lower. So, I think there will be some opportunity [for] investors to be able to buy dips in crypto and bitcoin particularly.”
Newton also adds that Bitcoin’s weekly chart and its relative strength index clearly shows the rising interest in the world’s largest cryptocurrency, major backed by institutional inflows.
Crypto analyst PlanB says that Bitcoin is closely following his Stock-to-Flow (S2F) model. If Bitcoin continues to follow the 2SF model over the next decade, BTC will knock-off the gold market cap by 2024 and the world’s real-estate market cap by 2028.
Ethereum Expected Price 2021: On the Verge of Break-out, 2021 could be Big Year for the Crypto
In addition to Bitcoin resistance levels setting records, Ethereum (ETH) is holding up strongly moving past $700 levels earlier this week and currently trading at $740 with a market cap of $84 billion. As Bitcoin (BTC) continues to make new highs every passing day, the ETH/BTC pair continues to drop.
As per analysts, Ethereum (ETH) is currently undervalued on the ETH/BTC price charts and thus Ethereum can show an upward breakout anytime soon. Also, some analysts have pointed out that ETH has been undervalued in terms of institutional buying. Once the BTC price cools down, analysts think the Ethereum (ETH) will attract institutions towards itself.
Popular crypto analysts Joseph Young explained: “The BIG reason institutions would naturally move into $ETH after Bitcoin is regulatory clarity. Ethereum is the ONLY other cryptocurrency an SEC official clarified as a non security. This is *very very* critical.
The reason why the regulatory clarity around Ethereum becomes more appealing is because of the XRP lawsuit by the SEC. Institutions wouldn’t want anything to do with anything that could be a security, ever. The SEC is becoming more active too. So, it makes sense…”.
The ETH price has gained nearly 90% since November 2020 and is still trading at a nearly 50% discount from its all-time high. The CME Group has already announced the launch of its Ether Futures contracts in February 2021. This is likely to further spike institutional activity in ETH.
Over the last three months, the open interest in Ether Options has surged 150% to a massive $880 million. The options data hike shows that traders are expecting another 20$ from the current with an Ethereum expected price 2021 of $880 until the next expiry of Jan 25.