Bitcoin’s first major rally ended on December 17, 2017 where the coin nearly topped $20,000 across many exchanges. The rally this time has been nearly as impressive, but it has not managed to break that magical $20,000 and push further on as the three-year anniversary of that high looms.
However, there is still time for the coin to mount one last push towards $20,000 and above before the year is out. There remains a few more weeks until 2020 is behind us, and while many believe the chance of crossing to $20,000 before the new year is gone, some see it happening in the next few weeks.
Mainstream adoption of Bitcoin continues to dominate the news with major players still buying in and legitimizing the digital currency space. This seems to be a powder keg that is waiting to let Bitcoin explode, but what will spark it is yet to be seen.
Accumulation
There was news over the weekend of MicroStrategy, a recent institutional Bitcoin believer, made bigger moves in the space.
“We have witnessed a large move up over the weekend, with MicroStrategy’s efforts to increase Bitcoin holdings from several large players bringing with it fresh optimism,” Matthew Dibb, COO at Stack Funds, told CoinDesk. “Our belief is that we will see a breach of $20,000 in the coming weeks.”
Last week, MicroStrategy raised $650 million through a convertible senior note sale to fund Bitcoin purchases. Since then, the cryptocurrency has rallied by over $1,000 and was last seen trading near $19,100.
Another big firm, MassMutual, have made their own moves into Bitcoin in the past couple of months, bolstering its appeal as “digital gold” and helping trigger a major price rally. The cryptocurrency nearly doubled from $10,000 to a new record high of $19,920 in the 12 weeks to Dec. 1, before falling to $17,700 last week amid a bout of profit taking.
Staggered approach
Kenetic Capital’s CEO Jehan Chu also foresees Bitcoin marching onward with “two steps forward, one step back” price action. “Those who missed the $17,600 dip may get another chance to buy, but likely at higher levels as bitcoin pierces the $20,000 ceiling,” Chu said.
The breakout, however, may remain elusive until the new year, as some investors are still looking to sell around record highs. “The topside is still kept with lots of selling orders, possibly from miners,” Patrick Heusser, head of trading at Zurich-based Crypto Broker AG, told CoinDesk over Twitter.
