Bitcoin shows no signs of slowing down: trading over the weekend sent the cryptocurrency’s price soaring, now headed toward $30,000
Bitcoin’s (BTC) dizzying Christmas rally continues: today, the cryptocurrency crossed the $27,000 wall. In addition, BTC’s market capitalization exceeded $500 billion for the first time.
Bitcoin’s capitalization exceeds $500,000,000.
Bitcoin’s new record comes just three days after the resistance at $24,000 was broken: this means that Bitcoin’s price has doubled in the last two months, as well as increased by almost $10,000 in December alone.
Bitcoin’s capitalization is now over $510 billion, just shy of Warren Buffett’s Berkshire Hathaway, the tenth largest company in the world. Only yesterday, BTC had surpassed Visa’s capitalization.
The weekend surge put Bitcoin’s price above the average trend line of the popular Stock-to-Flow model (at about $24,900), which predicts a target of $100,000 by December 2021.
At the same time, the current bullish cycle looks very different and far more sustainable than the 2017 cycle, with many experts predicting further rises in the coming months. The reasons for this optimism are manifold: huge institutional buying, stronger fundamentals, less available supply on exchanges and interest from retail buyers still relatively low.
However, the possibility of a pullback in the short term cannot be ruled out, especially since the next resistance seems to be positioned at $30,000.
Michaël van de Poppe, analyst at Cointelegraph Markets, warned traders:
„Vertical movements often end with a big correction, remember the summer of 2019? These rapid contractions are necessary to establish a range of horizontal movements.
Do not dismiss everything at the first correction, this bull market will last a long time. You should have a long-term horizon.“