It worked in the third attempt! The bitcoin price breaks through the $20,000 mark. After BTC/USD experienced a correction of around 17 percent in the first attack on $20,000 on November 24 and 12 percent followed in the second attempt on December 1, Bitcoin is now approaching the magic mark again.
On yesterday’s trading day, BTC/USD managed to climb back above the $19,000 hurdle after trading at $17,600 two days earlier.
Let’s look at the most important facts about the price performance of BTC/USD in the past trading week:
- The price peak last week was around $19,400 on December 13.
- The price minimum of the trading week reached BTC/USD at around $17,600 on December 11.
- Last week’s price average is around $18,500.
The $20,000 is considered by many analysts to be an important number to keep the bitcoin bull market of the past few months going. Should BTC/USD break the mark, it can be expected that the interest of private and institutional investors in Bitcoin will receive a further boost, which will drive the price further upwards. However, market observers are not unanimous about what will happen now in the short term after the breakthrough of $20,000. This is because the price is in absolutely uncharted territory here. Bitcoin has never traded higher, so there are no technical resistances or support zones from the past that can be used for a price forecast.
While some bullish analysts expect BTC to rise another few thousand dollars right away and never fall below $20,000 again, others believe that BTC/USD will only experience a powerful correction after breaking through $20,000. If we compare the current cycle with 2016/2017, we notice that the current corrections of well below 20 percent are much weaker than back then. Corrections of 30 to 40 percent occurred several times in the 2016/2017 bull market.
However, it must be taken into account that Bitcoin’s market environment has changed considerably since then. While at that time, it was mainly private investors who aimed at quick profits with Bitcoin investments, in recent months, it has been mainly the entry of institutional investors that has boosted the Bitcoin market.
However, these investors are usually not looking for quick profits but consider Bitcoin a long-term store of value — an alternative to the US dollar, which is currently under strong pressure and increasingly losing value. One of the main drivers of the seemingly unlimited “money printing” was the Corona crisis, for which billions of dollars had to be borrowed.
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