Extreme scenarios will wait: Bitcoin (BTC) did not hit $ 25,000 as of today, December 18, 2020, but we haven’t had a crash yet either. The fear of a BTC falling back below 20,000 USD is still present: will we be entitled to the same reboot as that of 2017?
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Bitcoin in uncharted lands
Bitcoin climbed above $ 23,610 yesterday, December 17, 2020, before experiencing a sharp correction. The BTC descended to the $ 22,420 level before climbing back up to $ 22,734 at the time of writing.
Some analysts anticipate a Bitcoin to $ 25,000, others expect the price of BTC with an overbought market. A test of 20,000 USD remains possible.
Bitcoin entered uncharted territory since December 16, 2020; forecasts are not based on any historical data.
Forecasts of a BTC holding above $ 20,000 is based on investors supporting the current rally and dollar devaluation is working in favor of Bitcoin.
Soon the fall?
The 2017 rally quickly took Bitcoin to levels close to $ 20,000 but, BTC also came down just as quickly. Should we fear a similar scenario for the current bullish rally?
The fundamentals of Bitcoin have improved over the past 3 years:
- During the 2020 bull run, the transaction fees of Bitcoin have fallen by 90%: according to BitInfoCharts, the average transaction fees BTC is around $ 5 in December 2020, up from $ 50 in 2017.
- The hashrate of Bitcoin increased by almost 10 times: according to data from Blockchain.com, the hash rate of Bitcoin amounts to more than TH 130 million / s in December 2020, compared to TH 14 million / s in December 2017.
- The number of confirmed transactions has also increased: according to data from Blockchain.com, the network BTC recorded 320,000 transactions confirmed as of December 14, 2020, compared to 280,000 transactions in mid-December 2017.
These 3 points show a stronger Bitcoin and blow some hope for a BTC now trading for the long term above $ 20,000.
The next few days will identify more precisely the major supports and resistances of Bitcoin in the short term. Bitcoin is trying to find its footing, analysts are doing the same: not easy to get out of the forecast with BTC exploring $ 20,000 and more.
Litecoin, welcome in the Silver Age