Despite many prominent analysts calling Bitcoin a dead currency after the coronavirus pandemic, the flagship cryptocurrency has been able to recover extremely well, outperforming the rest of the market and hitting a new all-time high above $20,000.
Bitcoin price is currently $23,400 and has hit a high of $24,295 on Binance on December 20. As Bitcoin is now in ‘price discovery’ mode, many analysts and investors are wondering what’s the next most likely price target for the digital asset.
It only took Bitcoin price a few days to jump from $19,278 to $24,295 and this isn’t even close to what happened during the last rally back in 2017 when Bitcoin was moving up and down $3,000 to $4,000 in less than 24 hours.
Although it’s extremely hard to predict Bitcoin price in the near future now, it’s important to note that institutional investors have been more interested than ever in cryptocurrencies.
Bitcoin Price Analysis: On-chain metrics
It seems that the number of whales has decreased significantly in the past month. The amount of holders with 10,000 – 100,000 coins has dropped from 113 on November 18 to only 106 currently.
Similarly, the number of holders with 100 – 1,000 coins has seen another notable dip from 13,947 on November 16 to a current low of 13,715. This indicates that whales and large investors are taking profit.
However, at the same time, despite these investors selling to take some profit, the price of Bitcoin has continued rising, which is a bullish indicator.
Bitcoin Price History
It’s crucial to look at the past to understand the potential Bitcoin has in the future. the weekly chart shows that BTC suffered several major corrections during the bull rally in 2017 before finally hitting the all-time high back then.
BTC/USD weekly chart – TradingView
So far, during this rally, Bitcoin had only strong closes on the weekly chart which indicates the digital asset is stronger, but at the same time in danger of experiencing a strong pullback.
In December 2017, Bitcoin price was trading at a low of $10,880 and managed to hit $17,222 on the same week and close at $19,029 the following week. There are less than two weeks remaining for 2020 to close, could Bitcoin do something similar again? The answer is yes, although it’s definitely unlikely, it’s absolutely possible.