Bitcoin (BTC) had been stuck below a long term resistance level near $10,000 since September 2019, and in recent months the Bitcoin (BTC) market was absolutely stagnant. However, now that has all changed. Bitcoin (BTC) has smashed through its long term resistance level with a rally from $9,100 to as high as $11,400 in the past 10 days, an increase of 25%.
Notably, as soon as Bitcoin (BTC) rose above $10,000, it rallied to $11,400 in just one day, indicating abundant FOMO (fear of missing out).
Bitcoin (BTC) is now by far the most lucrative asset class in the world, and therefore FOMO will likely only increase. Indeed, the global economy has been ravaged by the Coronavirus Pandemic. The only other asset which is doing well is gold, which has risen from $1,500 to $1,920 since the middle of March, an increase of 28%.
However, Bitcoin (BTC) has far outpaced gold, with an increase of roughly 175% during the same time period.
Considering the extremely lucrative nature of Bitcoin (BTC), which is in stark contrast to the suffering global economy, and the fact that Bitcoin (BTC) has now broken beyond long term resistance, both retail and institutional investors will likely pile into Bitcoin (BTC) over the coming weeks and months.
Therefore, the Bitcoin (BTC) rally is likely just getting started, especially considering that the May 12 block halving has drastically reduced selling pressure on the Bitcoin (BTC) market.
The question now is how high will Bitcoin (BTC) go? The stock 2 flow model, which projects Bitcoin’s (BTC) future price based on how many coins are being mined versus the circulating supply, predicts that Bitcoin (BTC) will rise to over $50,000, and possibly as high as $150,000.
This would be in-line with previous post-halving Bitcoin (BTC) rallies, since Bitcoin (BTC) has risen by an order of magnitude or more after each block halving in the past.
All things considered, it seems Bitcoin’s (BTC) all-time high of $20,000 is now certainly within reach, and Bitcoin (BTC) is poised to set a new all-time high before the end of this year, if not a lot sooner than that.
On a final note, the next long term resistance level to watch is $14,000, which was the peak of the rally in the summer of 2019. If Bitcoin (BTC) rises to $15,000, then it is likely clear sailing to $20,000.