On-Chain Analyst Says $55K Is The ‘Next Landmark’ As Bitcoin Price Hits $23K
Where is the bitcoin price heading to? The reasons for the fluctuations in the price are highlighted here. More information on the crypto is available for you.
Bitcoin Price According To On-Chain Analyst.
The fact is that the on-chain data now suggests that the price of Bitcoin has thereafter cut through another critical resistance range while putting $100,000 in play.
To rise above a new high of $ 23,000 on Dec 17, the Bitcoin price has surpassed the $21,000 - $22,000 resistance range. $100,000 is a ridiculously low target meanwhile as on-chain analyst Willy Woo now says.
To continue its rally in the near term, the $21,000 level was particularly important for bitcoin. Meaning BTC price had to break through to see a broader uptrend, exchange heatmaps showed stacked sell orders at around $21,000 to $21,500.
Here’s How Bitcoin Enters Price Discovery
No visible resistance levels and areas with large sell orders above $22,000 are shown by exchange heatmaps. This means the probability of BTC continuing its rally is high in the short term.
Woo said the BTC Top Cap Model shows $100,000 is a ridiculously low target due to the optimistic market sentiment and sell-side crisis. Further on he says,
Where the BTC Top Cap Model starts curving upwards, they are not at the all-time high juncture. In 2021 let’s see how they run. At the current trajectory, $100k is a ridiculously low target. As bitcoin becomes a $1T macro asset bucket, $55k is the next landmark.
As it would mean BTC would have hit 10% of gold’s market cap, Woo emphasised $55,000 as the milestone price for Bitcoin.
Here there is more to attributed to the way the bitcoin prices surge.
Make sure it gains the confidence of investors. Hence it is important to notice how bitcoin prices fluctuate in the market. When the analysts, therefore, take the matter into their notice, they suggest an upward trend that is quite promising.
Estimated to be around $9 trillion is currently gold’s valuation. Which remains the dominant safe-haven asset, above $50,000 bitcoin would begin eating up a relatively large portion of the market cap of gold.
Expecting bitcoin to rise to $30,000 after $20,000 was finally breached yesterday, exchange order books and volume trends also show that traders have moved their sell orders higher.
The probability of BTC hitting $30,000 as the first local top remains high if the momentum of the futures, options, and spot markets gets sustained throughout the upcoming days.
Why Do The Options Market Data Show That Institutions Remain To Be Bullish?
As they remain bullish these institutional funds on Bitcoin according to Deribit Insights, are the research arm of the biggest cryptocurrency options exchange.
This then reflects what is seen by the market cap of bitcoin. It is always observed to be that bitcoin now comes as the best when it is an investment vehicle. The portfolio builders prefer investing in the crypto.
Especially when the prices are hitting an all-time high, there comes the definitive investment option of the futures and options. To attain the set landmark there is always one or the other of the options where the bitcoin hits it.
Call options represent buy orders, and put options refer to sell orders in the options market. It shows that the expectations of a larger bitcoin rally are growing when buyers of the call spread increase.
Which is indicative of bullish bias, Deribit Insights said that the exchange spotted large buyers of call spreads. Furthermore, we have seen to be saying:
What Does Put And Call Options Come To Show?
Appearing to remain bullish, are institutional funds. 20-24k was popular before 20k broke as large buyers of Call spreads. Both bought x250 today as Jan+ Feb 22k Calls. Showing as buy was Jan 30k x500. Some roll to Jan+ Feb, keep exposure near calls profit. Bullish bias was ATM 19.5-20k Puts sold.
One threat for bitcoin is whale inflows however in the foreseeable future. Whale deposits into exchanges rose to levels unseen since March 2020 as data from CryptoQuant suggests.
BTC can still see a sustainable rally towards $30,000 as institutional buying is only starting to gain steam considering that Bitcoin has rallied despite increasing whale deposits.
With more such options there is a scope for the surging of bitcoin price up to unseen heights. As they come to be never foreseen, it is this special aspect contributing to the market cap of bitcoin. Always check the prices before you decide on leaping.
Winding Up With A Few More Words
Finally, it is here that you know to expect the best in the future. For December, this is more than enough news on the bitcoin price. We are sure to bring you more information in the coming days. Till then, adios amigos.