Christmas Brings New $25,000 Bitcoin All Time High

0

Last Updated on 23 March 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
View all posts

Christmas day 2020 brought a new Bitcoin all time high of around $24,600 on various exchanges. At the time of writing, Bitcoin is trading even higher at $24,700 after it briefly hit $25,000.

Analysts see a possible retest of the initial resistance near $19,500 before a next move upwards is initiated. The news of Bitcoin’s new all-time-high comes as more and more newspapers speak of possible roaring twenties when the Covid-19 crisis will end in the summer of next year.

What would that mean for Bitcoin and the wider world of crypto? We explain.

Advertentie.

Resistance becomes support

Katie Stockton, managing partner at Fairlead Strategies, explained that she expected Bitcoin to retest it’s previous resistance before edging higher. She stated:

Bitcoin is digesting its gains in a consolidation phase after having confirmed its breakout to new all-time highs with its mid-month push higher. Former resistance near $19,500 is now initial support. Overbought conditions have not had an impact on momentum.

Perhaps more likely in January, which appears prone to risk-off positioning as it pertains to other asset classes.

On the other hand, long term for Bitcoin at this point still looks good. An overview of the year report in Yahoo Finance explained that the best known crypto had since the crash of mid-March:

Surged by an impressive 506% and that was in just 3-quarters. If we take the same trajectory, Bitcoin should hit the dizzying heights of $143,000 in late 2021 before any pullback.

That is probably a tad too optimistic, but we’ll take it in our stride.

Roaring twenties

Meanwhile market commentators are starting to see a similarity between the end of the Spanish flu pandemic of 1918-1919 and the Covid-19 outbreak of 2020.

In fact, when Goldman Sachs recently published it’s 2021 outlook for equities, readers claimed that it compared to the roaring twenties, a time when people partied and stock markets rose to levels never seen before.

If indeed by next summer the (Western) world is vaccinated for the most part and the elderly and at-risk population would be out of the danger zone, the expectation is that society would engage in risk-taking activities which would involve a lot of contact and new experiences.

We can only hope that this means that a whole lot more people will try crypto in 2021.

sinenkiy / Depositphotos.com