The leading cryptocurrency by market value surge to a 17-month high of $12,936 on Bitstamp earlier today. At that price, the cryptocurrency was up $3,900 from the level of $9,036 seen a week ago. That’s an insane move so far! Since saying goodbye to the $8,000 level.
But where is the money coming from? Data from CoinLib reveals that BTC’s latest rally is not driven by new investor money. Instead, existing crypto traders are simply moving money back into bitcoin from the sidelines.
Bitcoin price hits 17-month high
After breaking the psychological $10,000 barrier, the BTC price raged higher in a matter of days. Prices rose from $11,000 to $20,000 in 16 days following the ratio’s rise above 2.4 percent on Dec. 1, 2018. Again, the bubble was short-lived, with prices falling to $12,000 on Dec. 22.
Where next for the bitcoin price?
Technical analysts see strong resistance for bitcoin around $13,700 and $14,200. If it blows past those markers, there’s little to stop it returning to all-time highs of $20,000.
On a longer time-frame, Morgan Creek Digital partner Anthony Pompliano sees the bitcoin price catapulting to $100,000 by the end of 2021. He cites multiple catalysts on the horizon, including the launch of institutional vehicles like Bakkt, ETF approvals, and the bitcoin halving event in 2020.