Bitcoin’s quotation is now one step away from $20,000.
The rally that has been triggered since October is leading the queen of cryptocurrency to reach the historical record seen only briefly in December 2017.
The thought goes back to three years ago, when suddenly the price of BTC suddenly rose, and then collapsed in a tight turn. This time, experts say, it’s different.
That’s what Clem Chambers, CEO of ADVFN and author of Trading Cryptocurrencies: A Beginner’s Guide – Bitcoin, Ethereum, Litecoin:
„The difference between 2020 and 2017 is that the current context is one of greater geopolitical chaos, greater adoption, but less public interest and less supply of new currencies. These are all determining factors. Bitcoin will reach $20,000, but the path will not be linear, and retracement is a high probability (statistically only one move in five never falls below an outdated level). However, in the long run, Bitcoin will navigate at $20,000 and the sky is the limit.
In fact the ascent of Bitcoin was slower than in 2017, but still fast. The risk is that there is a lack of support levels in case of retracement. In short, you have to be cautious, because you risk a slip.
Nevertheless, the ground is now sown, and according to Clem Chambers there are all the prerequisites for Bitcoin to travel permanently above $20,000.
Bitcoin, the 20,000 dollars make the volumes soar
The rush to $20,000 has made the exchange volumes soar. This is what Paolo Ardoino, CTO of Bitfinex, also notes:
„The crypto markets have seen volatility in the last 24 hours. Given that volumes on Bitfinex exceed 1 billion dollars, the crypto-currency rally seems destined to continue. Bitcoin’s path towards acceptance as a consolidated asset is gaining momentum“.
In practice, the more volumes there are, the more prices could rise, the more Bitcoin will continue to be accepted.
Trading on Bitcoin increased 81% on eToro in November. This was noted by analyst Simon Peters:
„The Bitcoin race continues and the all-time high of $20,000 now seems to be within reach. In the international investment platform eToro, the daily average of cryptocurrency trading is up 81% in November compared to the other months of 2020. At this rate, I would not be surprised if Bitcoin became one of the topics of discussion at Christmas.
What the less experienced are wondering is whether this is still a good time to buy Bitcoin. Because buying hours is a bit like getting on a train already running. This is answered by the eToro analyst:
„It is good to make a couple of considerations about this. First of all, I am of the opinion that some investors could make a profit if the Bitcoin, once it reaches $20,000, should suffer a slight price drop. This scenario could represent a purchase opportunity“.
But this retracement would be followed by a surge that would raise the price to $89,000 by the end of 2021. Simon Peters adds:
„Second, according to some estimates, Bitcoin could reach $89,000 by the end of next year. However, it should be emphasized that these models vary very easily and that cryptocurrency is a volatile commodity. It is therefore important not to invest more than you are willing to lose“.
His conclusion is as follows:
„In conclusion, the final question for any aspiring investor: Does Bitcoin have potential in the long term? If the answer is yes, then the golden rule of „time in the market“ rather than „timing the market“ should apply in this case. Recent announcements such as PayPal’s decision to allow its approximately 340 million users to buy and sell cryptocurrencies, including Bitcoin, could give investors some comfort that cryptocurrencies are destined to stay“.