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The price of Bitcoin (BTC) broke the resistance range of $ 21,000-22,000 and reached a new all-time high of $ 23,000 on December 17. Meanwhile, network analyst Willy Woo says $ 100,000 is a goal. “ridiculously low“.
Moving above $ 21,000 was especially important for Bitcoin, so it could continue its rally in the near term. Heatmaps from exchanges showed a wall of sell orders at around $ 21,000-21,500, which the BTC price had to break through to support a broader uptrend.
Bitcoin enters price discovery phase
Exchange heatmaps show no visible resistance levels and areas with large sell orders above $ 22,000. This means that, in the short term, the probability that BTC will continue its rally is high.
Due to optimistic market sentiment and falling sales, Woo he has declared that BTC’s Top Cap model considers $ 100,000 to be a “ridiculously low target“:
“We are not at the peak where the BTC Top Cap model starts to curve upward. Let’s see where it will go in 2021. $ 100,000 is a ridiculously low target according to the current trajectory. $ 55,000 is the next benchmark -> Bitcoin becomes a $ 1 trillion macro asset. “
Woo mentioned $ 55,000 as the next benchmark for Bitcoin, since it would mean that the cryptocurrency would have reached 10% of the gold market capitalization, currently estimated at around $ 9 trillion. Above $ 50,000, Bitcoin would start to gnaw away a relatively large chunk of the market capitalization of gold, which remains the dominant safe-haven asset.
Order books and volume trends also show that traders have moved their sell orders higher, expecting that Bitcoin goes to $ 30,000 after the $ 20,000 mark was finally crossed yesterday.
If the futures, options and spot markets continue to perform well in the coming days, the probability of BTC reaching $ 30,000 as the first local ceiling remains high.
Options markets show large institutions remain bullish
According to Deribit Insights, a subsidiary of the largest crypto options exchange that deals with research and data analysis, Institutional funds remain bullish on Bitcoin.
In the options market, the Call options represent purchase orders while put options see sales orders. Therefore, as call spread buyers increase, it suggests that experts predict an even bigger rally for Bitcoin.
His Twitter, Deribit Insights holds that its parent company has identified large call spread buyers, which is indicative of an uptrend.
However, a threat to Bitcoin in the near future could be the influx of whales. Data from CryptoQuant suggests that whale deposits on exchanges have risen to levels not seen since March 2020:
$ BTC – Average entry (calculated at the end of the day) on all exchanges reached the highest levels of the last nine months. These figures have not been seen since the big sale in March.
$ BTC The average entry of all exchanges (at the end of the day) hit a nine-month high since the big sell-off in March.
See graph https://t.co/kLek1Plpuo pic.twitter.com/kgff0fdW06
– CryptoQuant.com (@cryptoquant_com) December 17, 2020
Considering that Bitcoin has grown despite the surge in whale deposits and the fact that we are still in the early stages of institutional buying, BTC may still have a sustainable rally towards $ 30,000.
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