Bitcoin price (BTC) has crossed the USD 21,000 – USD 22,000 resistance range to rise above a new high of USD 23,000 on December 17. Meanwhile, analyst Willy Woo now says $ 100,000 is a “ridiculously low” target.
The USD 21,000 level was especially important for Bitcoin to continue its rally in the near term. Exchange heatmaps showed stacked sell orders of about $ 21,000 to $ 21,500, which meant that BTC price had to break to see a broader upward trend.
Bitcoin enters pricing
Exchange heatmaps show no visible resistance levels and areas with large sell orders above $ 22,000. In the short term, this means that there is a good chance that BTC will continue its rally.
Due to optimistic market sentiment and the sales crisis, Woo said the BTC Top Cap model shows that $ 100,000 is a “ridiculously low target.” He said:
“We are not at the highest point ever where the BTC Top Cap model starts to bend upwards. Let’s see how high she’ll run in 2021. $ 100k is a ridiculously low target on the current trajectory. $ 55,000 is the next milestone -> Bitcoin will become a $ 1T macro asset bucket. “
Woo highlighted $ 55,000 as the milestone price for Bitcoin as it would mean that BTC would have reached 10% of gold’s market cap.
Gold is currently valued at approximately $ 9 trillion. Above $ 50,000, Bitcoin would start to eat a relatively large portion of the market capitalization of gold, which remains the dominant safe haven.
Exchange order books and volume trends also show that traders have pushed their sell orders higher, expecting Bitcoin to rise to $ 30,000 after finally breaching $ 20,000 yesterday.
If the momentum of the futures, options and spot markets continues in the coming days, chances remain that BTC will hit $ 30,000 as the first local high.
Options market data shows that institutions remain optimistic
According to Deribit Insights, the research arm of the largest cryptocurrency options exchange, institutional funds remain optimistic about Bitcoin.
In the options market, call options represent buy orders and put options refer to sell orders. Thus, when call spread buyers increase, it shows that expectations of a larger Bitcoin rally are on the rise.
Deribit Insights said the exchange saw large call spread buyers, indicating bullish bias. They said:
“Institutional funds seem to remain bullish. Big buyers of Call spreads (20-24k popular before 20k broke). Today Jan + 22k Feb. Both bought x250. 30k x500 jan shown as buy. Profit close to calls, some rolls to Jan + Feb, keep exposure. ATM 19.5–20k Puts Sold – Bullish Bias. “
In the near future, however, a threat to Bitcoin is the influx of whales. Data from CryptoQuant suggests that whale deposits on exchanges have risen to unprecedented levels since March 2020.
$ BTC Average inflows across all exchanges (end of day) reached its nine-month high since the big sell-off in March.
Check out the chart https://t.co/kLek1Plpuo pic.twitter.com/kgff0fdW06
– CryptoQuant.com (@cryptoquant_com) December 17, 2020
Given that Bitcoin has rebounded despite increasing whale deposits, BTC may still see a sustained rise towards USD 30,000 as institutional purchases are only starting to gain momentum.