A new All-Time High has never been so close.
After several days in the $18K zone, Bitcoin crossed the $19K resistance on November 24, 2020. Bitcoin reached an annual high of $19,348. At the time of writing, the Bitcoin price is still above $19K at $19.1K.
Reaching a new All-Time High (ATH) above $20K seems more relevant than ever now. I even think it may happen by the end of the week.
I see 3 reasons at the moment that make me think that Bitcoin will see its price beat its ATH before a possible correction. Because yes, I still think we will have a correction afterward. This will be an opportunity to accumulate even more Bitcoins for those who really believe in the Bitcoin revolution.
Those who belong to this category will be able to take advantage of this opportunity to get closer to the essential goal right now in the Bitcoin world: To achieve the goal of owning 1 full BTC.
1. The Bitcoin supply is not sufficient for the current demand
At the end of October 2020, PayPal announced its entry into the Bitcoin world for the beginning of the year 2021. PayPal will allow its 346 million users worldwide to buy/hold /use Bitcoin directly from its platform.
This news will bring credibility to Bitcoin in the eyes of the general public.
PayPal has already started to offer its service to some of its American customers. The success is there, and since the beginning of November 2020, PayPal has purchased more than 70% of the newly minted BTC to meet the demand of its customers.
This is huge!
The other newly minted BTC have been purchased either by CashApp for its customers or by Grayscale Investments for its growing Bitcoin fund. Grayscale Investments holds close to 510,000 BTC for its clients who are mostly institutional investors.
The supply of new Bitcoins is not sufficient for the current demand that is booming. Every time spot exchanges increase their reserves of BTC, they find a direct buyer. Under these conditions, the Bitcoin price continues to rise. This is the basic application of the principles of the law of supply and demand.
2. Whales continue to massively accumulate Bitcoin
The Bitcoin Whales seem to have great confidence in Bitcoin for the coming months. Under these conditions, they continue to accumulate more and more BTC.
The rise in the Bitcoin price since the beginning of October 2020 has been accompanied by an accumulation of the Whales. This forms so-called Whale clusters:
These then act as a support for the Bitcoin price afterward. The current Bitcoin price appears de facto much more sustainable over time than during the Bull Run at the end of 2017, for example.
Over the last few days, we have seen that with every drop in the Bitcoin price, a strong rebound has been observed. This only reinforces the current price.
The number of Bitcoin Whales owning at least 10,000 BTC, or more than $191 million at the current price of Bitcoin, has reached 108 in the last few days:
The number of Bitcoin HODLers owning more than 1000 BTC, or more than $19.1 million, reaches 2165.
3. Trading volumes that continue to increase
A final positive element suggests that Bitcoin will surpass $20K by the end of the week: trading volumes continue to increase.
This trend has been observed since September 2020 on institutional and spot exchanges. Open interest in Bitcoin futures and options on the CME have already exceeded $1 billion during November.
Binance's BTC/USDT pair has consistently exceeded $1.5 billion in daily volume during November.
All indications are that the current rally is being led by the spot market rather than the derivatives or futures market. This should allow the current rally to be more stable and avoid a massive short-term correction.
The $20K seems to be more than ever within Bitcoin reach for the coming days. The next few days promise to be particularly exciting to follow. Bitcoin is making history, and we are fortunate to be part of it every day.
This article was first published on In Bitcoin We Trust Newsletter.
