In a highly expected moment, Bitcoin managed to hit an all-time high price ever since 2017 of USD 16,000 on some exchanges. People are starting to notice the rising market of cryptocurrencies globally, and a flashback of a strong FOMO is pushing people to purchase even more, driving the price further up. Even the giant JP Morgan is showing an interest in buying Bitcoin rather than Gold. Where will the price go this time?
Bitcoin Price Analysis – A strong momentum
In analysis of the price-action of Bitcoin, a move towards Area #4,or a price of USD 16,000 was predicted. This comes with a highly volatile legacy market, particularly the S&P 500 index, struggling to break through its own all-time high price of USD 3,660. Ever since July 2020, legacy markets were on a sideways trajectory, awaiting the outcome of the US presidential elections. With Joe Biden declared as the projected winner, and Trump trying his best to stay in office, legacy markets did not react fully with a decided trajectory.
The S&P for example is up about 9.5% since the beginning of the year. On the other hand, Bitcoin is up 120.5% since the beginning of 2020, up 18.5% this month, up 10% this week, and up 3% in 24 hours.
Is Bitcoin overpriced?
This typical question has been asked for years now, and the real value of BTC predicted by most analysts is nowhere near the current price. In fact, legendary investor Bill Miller says that this is the right time to buy it as the fundamentals are getting stronger every day.
Where is the price of Bitcoin heading?
After breaking the USD 16,000 price level, Bitcoin is on its trajectory to hit its all-time high price of 20,000 again. The technicals and the fundamentals are all there. Investors are entering the markets determined to reap the rewards of a price explosion, but this time with a strict risk management mindset, fearing a 2017 like price drop.
- Stop Loss levels to consider :
- USD 15,000
- USD 14,000
- USD 12,000
The above levels are mainly psychological areas set by market price-actions, just in case the market fails to keep its bullish momentum, though this is not looking to be the case so far, with BTC breaking through its USD 16,000 price level.