Bitcoin Halving Impact Fades as Demand Takes Center Stage
According to reports, the Open Interest in Bitcoin is now 30 times higher than it was 11 days before the 2020 Bitcoin halving.
Bitcoin could reach up to $40,000 USD, according to cryptocurrency analyst following the Christmas rally.
The price of Bitcoin smashed record highs on Christmas to hit $24,000 USD before surging even higher to reach $28,000 USD. The unprecedented height fell back down to a still bullish above $26,500 USD and experts suggest it might rise again.
Many are pointing the bull run to several factors. Most notable is the institutional interest the cryptocurrency market has seen over the year. During the 2017 bull run, investors were individual traders and retail investment drove the rally. The current rally, however, has been moved by the fresh wave of institutional adoption with firms like Grayscale and MicroStrategy adding significant amounts of Bitcoin and cryptocurrency to their assets-under-management.
Bitcoin selling before the rally
Leading up to the rally, traders were selling Bitcoin, moving their holdings to futures exchanges As a result, Bitcoin and the crypto market faced a short squeeze with short-term traders selling as Bitcoin neared previous record prices. This meant that Bitcoin price struggled to break through barriers of resistance close to its previous all-time-high price of just below $20,000 USD. When Bitcoin sent past the $20,000 USD mark, however, the token took a direction to skyrocket upwards.
Can Bitcoin hit another rally?
According to cryptocurrency analyst Michaël van de Poppe, if Bitcoin hits another wave, the price of the cryptocurrency could well hit $40,000 USD and higher. If Bitcoin can break through the next resistance barrier and continue its surge, we could be looking at a monumental bull run in the near future:
#Bitcoin breaking upwards even more as it’s approaching my second Fibonacci point of interest around $25,800.
The higher we go, the higher the next impulse move will bring us.
If $25,800 is this temporary top, next impulse could bring $BTC towards $40,000+. pic.twitter.com/CrcrUwVLXN
— Michaël van de Poppe (@CryptoMichNL) December 26, 2020