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Bitcoin is trying to break the $24,000 level after reaching its highest levels
Bitcoin has seen an impressive performance in the second half of 2020, especially in the past ten days, the currency has finally managed to break its highest level ever, moving above $ 20,000 for the first time in three years and set a new record above $ 24,000, the level Bitcoin is currently trying to overcome.
Bitcoin is trying to test the $ 24,000 resistance level again and possibly breaching it. Moreover, some price projections for 2021 indicate that it will likely succeed in doing so in the near future.
A new record
Back in December 2017, Bitcoin made history by reaching nearly $ 20,000, but after that, the currency entered into a one-and-a-half-year correction known as the “digital currency winter.”
Then the price started to recover very slightly at first, with continuous corrections after each slight rise, but all that changed in 2020, as the currency began to attract the attention of institutional investors, so companies like MicroStrategy are getting huge amounts of bitcoin to their clients, now. MicroStrategy alone has about $ 1.6 billion worth of Bitcoin after its recent purchase.
The leading digital currency also witnessed the third half event, which reduced the rewards per block, at the same time increasing interest in it, these two events led to an increasing scarcity of the currency as well as an increase in demand for it.
The demand spiked even higher when the payment giant PayPal finally decided to enter the world of crypto and add Bitcoin and a few other cryptocurrencies to its website.
This was a big step for PayPal but also for the crypto industry, as the largest online payment processor in the world PayPal enjoys massive reach, and this paradigm shift to cryptography helped spread awareness about cryptocurrencies and helped boost 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’s reaching new record levels, and in general, the increase in demand combined with the scarcity resulting from the limited supply of the currency contributed to the rise in its price.
What is expected for Bitcoin in 2021?
Bitcoin has the potential to hit $ 50,000 by the end of the first quarter of 2021 or by March 31, 2021, the “stock-to-flow” model that measures the ratio of stock to flow over the amount of an asset 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 happened.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.