It looks like BTC is ready to extend gains both in the short- and long-term, having tripled in value this year
Following a week of consolidation, the rally in the cryptocurrency market has accelerated, taking bitcoin price above the $20,000 milestone yesterday for the first time ever. BTCUSD extended gains to $22,900 on Thursday, retaining a strong upside bias above $22,000.
As investors continue to switch to digital assets amid the coronavirus pandemic and the heightened economic uncertainty, bitcoin has finally broken to fresh all-time highs on Wednesday, and it looks like the leading cryptocurrency by market capitalization is ready to extend gains both in the short- and long-term, having tripled in value this year.
2020 is different from the 2017 rally that stopped just shy of the $20,000 handle, as this time, there are many more adapters, long-term and institutional investors. This year, bitcoin received a significant boost from well-known names including payments giants Square and PayPal. There is also greater participation in the current rally as compared to 2017, with trading volumes being nearly 70% above the average these days.
Considering the strengthening bitcoin fundamentals and the fact that more and more investors are beginning to see the digital coin as a viable gold alternative, the longer-term outlook for BTC looks constructive, with some analysts predicting a climb to $100,000 over the course of next year.
In the short-term, BTCUSD could take a breath before another bull run takes place. For now, it looks like the pair may challenge the $23,000 figure that could trigger some profit-taking. On the other hand, long-term investors will likely stay in the game so the potential correction would be limited. In the medium-term, bitcoin may see a deeper retreat that would attract fresh buyers.
As of writing, cryptocurrency number one was changing hands around $22,600, slightly off the mentioned highs registered just below the $23,000 figure representing the immediate target for bulls.