- In the last decade, Bitcoin gained over 1 million percent.
- It is now adding to their gains. After blasting above $20k on December 16, the coin soared to over $23.6k on December 17, printing a new all-time high.
- At the time of writing (December 18), the Bitcoin price was trading at $23.11k, adding 25 percent in the last week of trading following the confirmation of the breakout bar of December 16.
Bitcoin (BTC) Price Overview
However, analysts project more gains.
From the daily chart, it is evident that there is interest from the investment community. Of note, the surge above $20k—a psychological mark closely watched by traders, was with high trading volumes—exceeding the recent averages.
Further, the follow-through bars of December 17 and 18 are with decent participation levels. As traders flow in, placing positions, it will only ignite more demand for the store-of-value asset.
For this specific reason, a section of analysts expects the BTC/USD pair, as aforementioned, to rally towards $25k and even $30k in the immediate term.
As long as prices are above $20k, every low is technically a loading opportunity.
Bitcoin (BTC) Market Movers
Spurring demand is good news from the fundamental front.
One argument is that the coin is superior to gold. Admittedly, BTC’s digital nature also means there is easy portability, unlike clunky gold, requiring special transportation to shift. Still, the latter is backed by central banks, regulated, and commands a $7 trillion valuation.
For this reason, Guggenheim CIO Scott Minerd says Bitcoin is undervalued at spot levels. He predicts the BTC/USD pair to rally to $400k in years ahead.
In his view, the incessant money printing from the Federal Reserve, the Bitcoin fixed supply, and the disparity in relative valuation between the gold and Bitcoin mean there is room for more upsides.
Through their firm, Guggenheim has applied to the US SEC. They now have a right to invest 10 percent of their net asset value, translating to over $500 million, in Grayscale Bitcoin Trusts (GBTC) through the Macro Opportunities Fund.
Grayscale charges a two percent management fee to manage BTC for their institutional and accredited investors. Additionally, they also pay a premium for a share of BTC.
Meanwhile, the rising BTC prices have seen miner revenue rise to a 17-month high. According to GlassNode, miners earned $1,053,204.43 on the last day, exceeding those registered on Aug 7, 2019, of $1,043,747.38.
Bitcoin Price Analysis
At the time of writing, the BTC price is up 25 percent in the last week of trading.
The uptrend is firm, and buyers are in control.
Notably, BTC/USD is trading within a bullish breakout pattern. The confirmation of the breakout bar of Dec 16 at the back of increasing trading volumes re-affirm traders’ conviction of higher highs.
With diverging BB and candlesticks banding along the upper BB, the underlying momentum is high. Therefore, every low is technically a buying opportunity for aggressive traders. This holds as long as prices are trading above $20k, the former resistance turned support.
The immediate buy target is at $25.5, the 161.8 percent Fibonacci extension of the September to November trade range.
Disclaimer: Opinions expressed are not investment advice. Do your research.