Bitcoin shows no signs of slowing down: trading over the weekend sent the cryptocurrency’s price soaring, now heading towards $30,000
Bitcoin’s (BTC) dizzying Christmas rally continues, with the cryptocurrency crossing the $27,000 mark today. In addition, BTC’s market capitalisation exceeded $500 billion for the first time.
BTC/USD Hourly Candles
Bitcoin’s capitalization surpasses $500,000,000
Bitcoin’s new record high comes just three days after it broke through resistance at $24,000: 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 capitalisation is now more than $510 billion, slightly less than Warren Buffett’s Berkshire Hathaway, the world’s tenth largest company. Only yesterday BTC had surpassed Visa’s capitalisation.
The weekend surge put Bitcoin’s price above the average trend line of the popular Stock-to-Flow model (at around $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 in 2017, 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 still relatively low interest from retail buyers.
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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 liquidate everything at the first correction, this bull market will last a long time. You should have a long-term horizon.“