Bitcoin bulls are back to registering a new all-time-high every other day after seeing a minor pullback at $23,000 crashing its price by $1,800. After consolidating above for almost a week the top cryptocurrency began a poetic run breaching $25,000 on Christmas eve and breached $26,000 on several exchanges today on boxing day. Although BTC did not’ hold for long as a price correction might be on the cards owing to its near $2,500 price rally since yesterday.
Bitcoin in its current bull rally starting towards the end of October has not just broken records, but broken them in quite a poetic manner. BTC broke past the 2017 ATH of near $20,000 on 16 December rallying over $21,000, incidentally the 2017 bull run ended on the same day 3 years ago. Bitcoin also managed to breach $25,000 on December 25 and followed it with a new all-time high of $26,000 on December 26, prompting many jokes and memes on crypto Twitter.
$25,500 already. You psychos are really going to try to take out $26k on the 26th aren’t you?! Wow
— Pomp 🌪 (@APompliano) December 26, 2020
Bitcoin managed to reach $26,000 within 2 hours of breaching the $25,000 resistance suggesting the bullish momentum in bitcoin’s favor. This high bullish momentum is evident from the lack of resistance and how bitcoin has managed to overcome flash crashes over $2,000 within hours. Most of the resistance post $20,000 became strong support, first the $21,000 and then $23,000. Bitcoin’s managed to post 17 green candles consecutively on the 15-minute chart showing exhausted bitcoin supply primarily because of over-buying by the likes of Grayscale, Microstrategy, and PayPal.
17 straight green 15m candles on gdax. This is what happens when supply is exhausted… pic.twitter.com/Mh7ys9HtVn
— hodlonaut 🌮⚡🔑 🐝 (@hodlonaut) December 26, 2020
The ongoing bitcoin bullish rally this time around is largely dominated by the institutional giants such as MicroStrategy who converted $1.3 billion of its treasury into bitcoin, PayPal started Bitcoin trading service from the app itself allowing over 26 million of its customers to buy, sell and store their bitcoin using Paypal
What Are The Chances of Breaching $27,000 on December 27?
Very strong, as institutions would continue to hodl as much Bitcoin they can however they are primarily seen to be active on weekdays which led many to believe the Christmas eve rally pushing bitcoin post $25K was because of the retail market rather than institutions.
Dan Held, the Director of Business Development at Kraken and a big-time Bitcoin bull and long-time hodler believe bitcoin might be entering a supercycle constantly fuelled by its decreasing supply.
1/ Why Bitcoin may be going through a “Supercycle”
This time is different: COVID, Gold 2.0 narrative, institutional herd, and ease of use have set a new stage.
Instead of a normal bull/bear cycle, Bitcoin would break convention and enter a “Supercycle”
— Dan Held (@danheld) December 26, 2020
The bitcoin block reward was halved this May bringing it down from 12.5 BTC per block mined to 6.25 supply, thus reducing its supply by half. As institutions have arrived after the third halving, the supply rate is already 1/4th when early hodlers realized bitcoin potential when the top cryptocurrency was trading in single to double-digit price and accumulated quite a portion many eventually turning into billionaires as well.
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