In another big move yesterday, the price of Bitcoin went as high as $19,400, a level last seen during BTC’s run-up to a new all-time high.
But with the last resistance level present at $19,300, Bitcoin has yet to make a strong move upwards.
Today, we are back to reaching for the new high, just about 4.5% away from $20,000.
However, technically, the digital asset is just inches away from the ATH if we consider Kraken’s 2017 peak. During the last bull run, different cryptocurrency exchanges had different peaks.
While Bitstamp had the ATH around $19,665, BitMEX had it $100 up at $19,777, and another $100 up on Huobi at $19,867. Gemini’s Bitcoin ATH was at $20,000 while Coinbase was just under $19,900.
The consensus in the market, however, is for the round figure of $20,000, and as Erik Voorhees, CEO of ShapeShift exchange, noted, “we’ve already surpassed the more important ATH, which is market cap. BTC value in aggregate is already at its all-time high.”
Amidst the ongoing bulls onslaught, people are betting that the largest cryptocurrency could go as high as $100,000 in this cycle.
Up 165% YTD, according to Brian Estes, chief investment officer at hedge fund Off the Chain Capital, for Bitcoin, surging from $18k to $100k in a year is not a stretch.
“I have seen bitcoin go up 10X, 20X, 30X in a year. So going up 5X is not a big deal,” Estes told Reuters.
In mid-July, just four months back, bitcoin was around $9.2k, and since then, it has increased 10x in value.
Bitcoin can hit anywhere between $100,000 and $288,000 by year-end 2021, predicted Estes based on the stock-to-flow model, which he said has a 94% correlation with the price of Bitcoin.
But not for Toronto-based independent proprietary trader Kevin Muir said, “Any hedge fund model on bitcoin is rubbish. You can’t model a mania,” adding,
“Is it plausible? For sure. It’s a mania. But does anyone actually have a clue? Not a chance.”
What’s really interesting is the shortage of supply we are seeing. With bitcoin produced in a day already halved, Square’s Cash App, PayPal, and Grayscale are gobbling up the majority of Bitcoin’s supply.
Amidst this, the whale index, addresses holding at least 1,000 BTC, is also at an all-time high at over 2,200, a number up 37% from 1,600 in 2018, suggesting institutional money is pouring in, said Phil Bonello, research director at digital asset manager Grayscale.
As for retail investors that could have been sidelined due to the pandemic may be back again with force now that PayPal has entered the market.
Because of this, Lennard Neo, head of research at crypto index fund provider Stack Funds, expecting a deluge of retail demand even more intense than in 2017, predicts BTC to reach $60k to $80k by the end of 2021.