Bitcoin tries to break above $24,000 after hitting an all-time high

Bitcoin has seen an impressive performance in the second half of 2020 especially in the last 10 days, the coin has finally managed to break through its all-time high.

Bitcoin has seen an impressive performance in the second half of 2020 especially in the past 10 days. The coin has finally managed to break through its all-time high, moving above $20,000 for the first time in three years. Not only that, but it went further, It set a new record above $24,000, which is the level Bitcoin is currently trying to break.

trying Bitcoin resistance level test At $24,000 again and possibly breaching it, moreover, some price predictions for 2021 suggest that it will most likely succeed in doing so in the near future.

A new standard

Back in December 2017, Bitcoin made history by hitting the nearly $20,000 level, but after that, the coin entered a year-and-a-half correction known as “crypto winter.”

Then the price started to recover very slightly at first, with constant corrections after each slight rally, but that all changed in 2020, as the coin began to attract the attention of institutional investors, companies like MicroStrategy started acquiring massive amounts of Bitcoin for their clients. MicroStrategy alone owns about $1.6 billion worth of bitcoin after its recent purchase.

Bitcoin

The leading cryptocurrency also experienced a third halving event which reduced the rewards per block, while at the same time increasing interest in it, these two events led to an increasing scarcity of the coin as well as an increase in demand for it.

The demand soared even more when payments giant PayPal finally decided to get into the crypto world and add Bitcoin and a few other cryptocurrencies to its website.

This was a huge step for PayPal but also for the crypto industry, as the largest online payment processor in the world PayPal has tremendous reach, and this paradigm shift to crypto has helped spread awareness about cryptocurrencies, as well as help cement Bitcoin's reputation as a reliable and legitimate company like PayPal decided to work with it.

Basically, there was not a single event that caused Bitcoin to rise only, a series of small events contributed to the currency reaching new highs, and in general the increase in demand combined with the scarcity caused by the limited supply of the currency contributes to its rise in its price.

What is expected for Bitcoin in 2021?

Bitcoin has the potential to reach $50,000 by the end of the first quarter of 2021 or by March 31, 2021, and the “stock-to-flow ratio” model has been fairly reliable when it comes to forecasting price movement. Bitcoin in the future, based on the supply shock the coin experienced after the halving event.

The scarcity of the coin is closely related to the value of the network, and with the rate of production declining earlier this year, this will have significant implications for prices.

By the end of the second quarter the coin is expected to hit $80,000 and will end next year at a peak of $90,000 per coin, but considering the growing demand from institutional investors looking to hedge against inflation.

 

Mohamed Abdel Khaleq
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