- Bitcoin is yet to fully price in the strong fundamentals as it gains more institutional attention.
- BTC price currently trades around $18,000, targeting new all-time highs.
As Bitcoin price approaches $20,000, it becomes more likely that the ongoing rally is yet to lose momentum. Volume continues to rise as several metrics begin to see new highs. The current market behavior suggests that the $2,000 price gap to new all-time highs will be closed in the upcoming weeks.
The fundamentals look healthier than ever
Bitcoin price continues to gain traction, as its fundamentals are looking strongly bullish, and it appears that the market is yet to price in these factors fully. It is expected that this narrative would ramp up the price to new highs.
The bullishness of the present market seen in Bitcoin is different from the last bullish cycle, but the current price rally is not coincidental.
Here are some fundamentals that are already hitting a new all-time high indicative of future price surge.
Realized capitalization: Instead of pricing, every outstanding unit of the Bitcoin in circulation at the last market price realized market cap values different parts of the supplies at different prices. This on-chain metric records the value of the digital asset at the price it was traded for.
Bitcoin Realized Capitalization
Bitcoin's liquid supply is taken into account, excluding those that haven't moved since 2009 as it did not have a market by then. The realized capitalization also confirms the bullish sentiment reflected in the market.
Addresses with a balance of $10 or more: A steady increase of this factor points to the increased adoption. It shows a growing demand for Bitcoin, especially in small portions that are consistent with retail investors. This is a good sign because it increases demand and will inevitably boost its intrinsic value.
Bitcoin Addresses With $10 or More
Sure, one address might not necessarily correspond to one person. On average, it satisfies the purpose of indicating an all-time high in the adoption of Bitcoin.
Bitcoin exposure to institutional investors: It appears the bullishness behind Bitcoin is different from the last bull market because there seems to be a more organic demand for digital assets. Institutional investors' interest will undoubtedly go a long way to drive up demand leading to further price rallies as we see the Bitcoin treasuries.
Bitcoin Treasuries
One major chart that reflects hype around Bitcoin is the number of tokens held by asset managers like Grayscale, which currently has over 500,000 BTC, worth over $9 billion. This sum amounts to 84% of the BTC publicly declared on the treasuries.
Grayscale Bitcoin Trust
Having this increase in exposure strengthens the bullish outlook. This proves that an older and less crypto-native group of investors retains a significant appetite for it.
Technicals show Bitcoin on the brink of take-off
Given that the backdrop to the recent strong price performance is fundamentally strong, Bitcoin may soon slice through the $18,500 resistance and retest the previous all-time highs.
Smashing the $19,892 price hurdle will clear the path for a jump towards the 127.2% or 141.4% Fibonacci retracement levels. These important potential price targets sit at $24,500 and $26,830, respectively.
BTC/USD Monthly cChart
Failing to break through the overhead resistance may lead to a correction to the 78.6% or 61.8% Fibonacci retracement levels. These support zones are hovering around $16,300 and $13,500, respectively.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.