The crypto market looks pretty bloody today with the most important coins trading in the red.
On the other hand, it seems that Bitcoin is still trading above $19k, which means that support here is getting stronger.
At the moment of writing this article, BTC is trading at $19,114.97.
Bitcoin’s rally to continue in 2021
Bloomberg Intelligence senior commodity strategist Mike McGlone said that he expects Bitcoin’s big rally to continue next year as well.
It’s been revealed that in a new December outlook on BTC, McGlone said that BTC’s new line of resistance in 2021 would likely be at the $50,000 mark.
“Bitcoin will maintain its propensity to advance in price into 2021, in our view, with macroeconomic, technical and demand vs. supply indicators supportive of $50,000 target resistance, implying about a $1 trillion market cap. The $10,000 mark has shifted to a critical support level after serving as the crypto’s resistance mark since 2017,” he said.
According to the report, Bitcoin is far from overheated at the moment, and he noted that the foundation support is far greater compared to 2015 and 2017 due to the increasing institutional investments and a drop in new supply due to this year’s halving.
“The year 2020 will likely be looked back upon as the key to Bitcoin’s mainstream evolution, in our view. Strong inflows in regulated exchange-traded products, futures open interest, addresses used and allocations from corporate treasuries, and some billionaires, solidify the 2020 annual price of about $10,000 as foundation support…” he said.
He continued and explained that “Demand measures of Bitcoin and crypto assets appear to be gaining endurance for more of the same in 2021. From the Office of the Comptroller of the Currency (OCC), allowing banks to provide crypto-asset custody services to PayPal onboarding payments, clearing 2020’s volatility hurdle likely widens the path toward mainstream adoption.”
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