Bitcoin breaks the record - already over USD 23

If on Wednesday, 16.12.2020/XNUMX/XNUMX, someone wondered whether it was getting more expensive in recent days Bitcoin will break the barrier of 20 thousand. USD and stopped following the quotes for a while, you may be surprised if you look at them today. Subsequent price resistance - both technical and psychological - burst like soap bubbles here.

For those who don't know or understand blockchain technology, cryptocurrencies were supposed to be a bubble, but a speculative one. How many times was it going to burst and raze everyone who invested in it? Nobody can count it. 

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Meanwhile, the facts are that Bitcoin, the first and most famous cryptocurrency, is just breaking new price records. Already on Thursday, December 17.12.2020, 22.200, the price exceeded USD 23 after a dozen percent increase in just two days, and in the afternoon the rate even reached the level of USD 700. Careful observers of the BTC exchange rate could have expected it, because after the last record at the turn of November and December, the price of the cryptocurrency entered a slight correction, or even a side trend, because each drop in the rate was an opportunity for large purchases, which resulted in a return to the area of ​​18-19 thousand . USD. After a few days of growth and approaching 20 thousand. USD was therefore to be assumed that it would be fine (for cryptocurrency owners and enthusiasts). And indeed - two strong upside candles in the last two days show the strength of the market.

Bitcoin (BTC) chart, D1 interval. Source: xNUMX XTB.

Where did Bitcoin grow so much?

Analysts are divided. Some of them pay attention to the meeting FEDwhich took place on Wednesday. After its completion and information that it was decided to maintain the asset purchase program at USD 120 billion per month and to keep interest rates practically at zero, the US dollar began to decline. And a weak dollar is always stronger cryptocurrencies.

"- Movement of prices above 20 thousand. The USD was fast approaching and I am actually surprised it didn't happen before. Ultimately, information from the Fed provided additional fuel for growth, and the breakout of psychological resistance by 20. USD will surely provide publicity, which in turn is a great chance for a strong end of this year " - says Craig Erlam from Oanda Europe.

Where is the limit of Bitcoin growth?

Interestingly, Bitcoin is increasingly being analyzed very carefully on the basis of specific data. Before that, we mostly encountered wishful-style pricing "Sky is the limit". Now professionals reach for tools that provide specific valuations and indicators. 

One is Bitcoin's ratio to gold. Mike McGlone of Bloomberg Intelligence calculated that it should be 100 points, while at the current price of BTC and gold it is only 12 points. This does not mean, however, that Bitcoin will be increasing all the time. After all, gold that is close to historical highs can also get cheaper. 

The CEO of Compound Capital Advisors Charlie Bilello points out that everyone who invested in Bitcoin in 2011 can boast a record growth of ... 6 percent!

According to Bloomberg, Bitcoin will cost 50. USD already in 2021. 

"- 2020 will be seen as the key to Bitcoin's entry into the mainstream market. With macroeconomic, technical and demand indicators, we think the level of 50. USD as the target resistance, which is approximately $ 1 trillion in capitalization. Price 10 USD is the support level " - says Mike McGlone.