The price of Bitcoin remains at record levels. During the year, adoption has been the key factor, but in the short term, Bitcoin’s price action seems to be reacting to two major events with an epicenter in the United States. Both factors could be aligned for the continuation of the bullish trajectory.
Despite its gains, Bitcoin has seen two rejections at the $23,000 mark. According to one trader, high selling pressure above that resistance signals a local top for Bitcoin that could put the cryptocurrency in a consolidation phase. During 2020, Bitcoin has entered similar stages where the price gained momentum, then rose massively and consolidated afterwards. Therefore, the trader does not expect another price discovery until 2021.
Trader Michaël van de Poppe has pointed out that Bitcoin has seen a 500% increase from its March 2020 low. At that time, the start of economic measures by central banks around the world to mitigate the effects of Covid-19 was decided, benefiting assets used as a store of value. Since then, Bitcoin has been the biggest winner in this regard, outperforming gold.
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