After a massive rally towards $41,986, Bitcoin price has slowed down and it’s currently trading at $39,600. This pullback can’t even be considered a pullback as it really small and the uptrend remains intact. Bitcoin bulls know there is very little resistance to the upside and target $50,000 as the next critical level.
BTC/USD daily chart – TradingView
BTC price has been inside a robust rally since October 2020 starting from $10,000 and experiencing a 300% rally within four months.
Can BTC price reach $50,000 by the end of January?
As Bitcoin price is currently in discovery mode, it’s hard to accurately predict resistance levels. Traders can use psychological levels like $42,000, $43,000, etc, however, these aren’t too accurate either.
The most significant and bullish factor is the number of whales and large holders. According to statistics from Santiment, the number of large holders with 1,000 – 10,000 BTC ($39,600,000 – $396,000,000) has increased notably from 2,128 on December 26 to a current high of 2,310.
This is a huge increase and represents 128 new whales that have entered the network which own at least $5 billion in total worth of BTC.
The fact that more whales have entered the Bitcoin network since December 26 while BTC price increased by 70% in the same period of time is extremely bullish and it shows large holders are willing to buy Bitcoin at these prices expecting it to rise even higher.
Additionally, the amount of BTC inside exchanges remains relatively low. Back on March 12 after the massive crash, around 11% of the total supply of Bitcoin was inside exchanges. This number was still high throughout the beginning of 2020.
On November 16, 2020, the percentage of BTC inside exchanges was around 9.5. Although this number has increased to 10.4% currently, it is still lower than at the beginning of 2020 despite the massive increase in price which shows most investors are not willing to sell just yet.
Of course, we must still be cautious as this can certainly change quickly. However, it is a good indicator of the strength of Bitcoin right now. With this in mind, we can definitely see BTC price reach $50,000 by the end of January and perhaps hit the magic number of $100,000 by the end of 2021.