Traders and analysts mull what’s in store for Bitcoin after a historic day.
After a historic day in which the headlines could hardly keep up with price action and Bitcoin set a new all-time high above $26,500, traders and analysts are now turning their attention towards what could be in store for the digital currency over the next five days as 2020 comes to a close.
While a 8-9% daily gain might be pittance compared to Bitcoin’s historical volatility — there was a 42% rally as recently as 2019 — as Messari founder Ryan Selkis pointed out, today’s rally featured only the second $2,300 candle in the digital currency’s history:
Bitcoin’s first $2300 candle took 8.5 years.
It’s done that again today. pic.twitter.com/FfiCrG9OhX— Ryan Bitcorn Selkis (@twobitidiot) December 26, 2020
Perhaps caught in the euphoria, some traders are already looking towards when daily candles eclipse five figures:
When will #Bitcoin have its first $10k daily candle?— Luke.hodl (@Coinosphere) December 26, 2020
Clamoring for $30,000
Positive headwinds are swirling for Bitcoin’s next step. “Bitcoin” is currently trending on Twitter with 164,000 recent tweets — comfortably outstripping the next highest trending item, the archeological discovery of a street food stall in the ruins of Pompeii.
Additionally, as Cointelegraph has previously reported, this recent rally has put Bitcoin back on the path plotted by the popular Stock to Flow (S2F) model, which forecasts a price of nearly $300,000 before 2024.
Another popular folk metric indicated that Bitcoin mania still has a long ways to climb towards 2017 peaks as well. According to Google analytics, search history for “Bitcoin” is barely at a fifth of all time high levels:
Google Trends data:
Searches for ‘buy #Bitcoin’ are around 1/5th of their all-time peak
Will searches eventually 10x the last peak? It has begun. pic.twitter.com/MUgRfPsvlD— Alistair Milne (@alistairmilne) December 26, 2020
All together, the positive sentiment and parabolic price action have a greater and greater number of traders clamoring for ‘30k by the 30th” — a $30,000 price on the 30th of December:
Retweet for 30k #BTC by the 30th— Stacking (@StackingUSD) December 26, 2020
Blow off top?
Despite the positive sentiment and price action that puts Cape Canaveral to shame, some traders are already lining up possible short positions. One trader is calling for a blow-off top in the next two weeks:
Update – Weekend blow off in full motion.
I suspect the hammer will come within the next 2 weeks pic.twitter.com/3xAirpOJrz— Crypto Leo (@CryptoLeos) December 26, 2020
While it remains the minority sentiment, he’s not alone and thinking turbulence could be ahead for Bitcoin. $2.3 billion worth of Bitcoin futures expired on Christmas day, which historically has led to choppy markets.