Forget that asset’s former all-time high, Bitcoin price just finally blasted well above $20,000 for the first time in history. With the leading cryptocurrency by market cap having no clear resistance above it, it has now entered price discovery mode, and where to next is anyone’s guess. However, here are some logical levels that could act as the next hurdle for the unstoppably bullish Bitcoin.
$20,000 is no longer a concern for the top cryptocurrency | Source:
Bitcoin Clears $20,000 To Cap Of 2020 With A Bang
With less than two full weeks left in what has been an incredibly eventful year, Bitcoin has not only set a new all-time high yet again this December but has now broken above $20,000 for the first time in the young asset’s twelve years in existence.This milestone puts each Bitcoin at over ten times the cost per ounce of gold, and is yet another step in the cryptocurrency absorbing the precious metal’s market cap, before moving onto other asset classes.
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The digital gold narrative combined with inflation fears has put the ultra-scarce asset on the radars of hedge funds and high wealth institutions and individuals that are seeking to protect their buying power over the next several decades.The new rush of investors with serious capital behind them has propelled the first-ever cryptocurrency beyond the key level.
Skies are essentially clear above here, with no historical resistance in Bitcoin’s way. However, because smart money has now realized the asset is long-term, the market is likely to shake out participants left and right before the full next leg up begins.
But then again this is Bitcoin, and its upwards trajectory in 2020 has been unstoppable. Not even $20,000 could contain it, so what will?Fib Extensions Provide Clues To Where Crypto Could Correct
From here, there are primarily psychological resistance levels that are bound to develop around rounded numbers or repeating patterns. For example, $22,222 could cause some trouble for bulls, as well as $25,000, or $30,000.
Fibonacci extensions could also be logical areas where corrections could take place, and include $24,100, $26,500, $30,000, $46,600, and $63,100.
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However, given the targets experts anticipate at the height of the next bull market, it is unlikely any of these levels will act as a “top” for crypto. With $20,000 now cleared, the cryptocurrency is undoubtedly in a new bull market, and the sky is the limit once again.Featured image from Deposit Photos, Charts from TradingView.com