Bitcoin Almost Taps $28,000 in Continued Holiday Rally

Nick Chong

1 year ago

2 mins read

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Bitcoin has continued to erupt higher, even as certain traders have asserted that the market is clearly overbought. As can be seen in the chart below, BTC recently moved toward $28,000. While it did not manage to tap that level, it peaked at $27,900 on top exchanges.

Bitcoin currently trades for $22,700 as buying pressure has temporarily paused.

There are some that think that BTC could target $30,000 in the near term as the trend remains positive and as institutional players continue to flood into space.

Bitcoin Ready to Move Even Higher?

Travis Kling, the founder of Ikigai, says that Bitcoin could move even higher due to the lack of institutional exposure to this space. While there have been billions siphoned into BTC over recent months by institutional players, most still have little exposure to the space and may seek to gain exposure as the price continues moving higher with little sell-side liquidity:

“It’s rapidly becoming clear that the pain trade in #Bitcoin is much higher. It’s apparent that institutions are coming in w/ big checks. Much of that capital still has to “get through docs” and “investment committee”. They thought they’d buy $20k. They’ll be lucky to buy $30.”

It's rapidly becoming clear that the pain trade in #Bitcoin is much higher.

It's apparent that institutions are coming in w/ big checks. Much of that capital still has to "get through docs" and "investment committee".

They thought they'd buy $20k. They'll be lucky to buy $30.

— Travis Kling (@Travis_Kling) December 26, 2020

Many others in the space have shared a similar opinion.

At this point, where Bitcoin is in price discovery with no known support or resistance levels, those that want exposure to the space may opt to buy the cryptocurrency now in expectations they can flip it months down the line for much more, even barring a short-term sell off.

MicroStrategy made this much clear just recently when it purchased nearly $650 million worth of BTC at a cost basis of ~$22,000.

There were many on Twitter arguing that this was unwise, considering BTC’s 100% gain over recent months. But, as evidenced by this rally, this may not be the case.

Bigger Than Visa

Bitcoin now touts a bigger market capitalization than Visa, making it the world’s most valuable payment network.

It has also recently become the world’s 20th largest currency by total money supply, according to data shared online.

#Bitcoin soars past $27K, Has risen >$2.5K in a little over a day; Market Cap now tops $500bn. This also makes Bitcoin bigger than #Visa. pic.twitter.com/vF9RNonKHW

— Holger Zschaepitz (@Schuldensuehner) December 27, 2020