The Bitcoin (BTC) price crossed the resistance range between $ 21,000 and $ 22,000 and on December 17 rallied above a new high of $ 23,000. Meanwhile, analyst Willie Wu now says $ 100,000 is a “very low” target.
The $ 21,000 level was especially important for Bitcoin to continue its rally in the short term. The heat transfer charts showed that the sell orders ranged from $ 21,000 to $ 21,500, which means the bitcoin price has to break through to see the broader trend.
Bitcoin participates in price discovery
Heat transfer maps do not show clear resistance levels and areas with large orders over $ 22,000. In the short term, this means that the likelihood of BTC continuing to rise is high.
Given the positive market sentiment and the crisis in sales, Wu said the BTC Top Cap model shows that $ 100,000 is a “very low target.” He said:
“We have not yet reached the turning point as the upper boundary of BTC is starting to curl. Let’s see how high it will be in 2021. $ 100K is a ridiculously low goal on the current path. $ 55k – Next Milestone -> Become $ 1T Bitcoin Macro Assets “.
Wu confirmed that $ 55,000 is the most popular price for bitcoin because that means bitcoin will reach 10% of the market value of gold.
Gold is currently valued at around $ 9 trillion. Bitcoin exceeding $ 50,000 will begin to occupy a relatively large share of the market value of gold, which remains the dominant haven.
Stock order books and volume trends also show that traders have pushed their sell orders higher and expect the bitcoin price to rise to $ 30,000 after yesterday’s final $ 20,000 break.
If the futures, options and spot markets continue to develop over the next few days, the likelihood of BTC hitting $ 30K as its first local peak remains high.
Options market data show institutions remain optimistic
Institutional funds remain bullish on Bitcoin, according to Deribit Insights, the research arm of the largest cryptocurrency options exchange.
In the options market, calls are orders to buy, and put options are orders to sell. As the buyers spread widens, this indicates that expectations for further growth in Bitcoin are growing.
Deribit Insights reported that the stock exchange found a large number of spread buyers, indicating an upward slope. They said:
Institutional funds remain optimistic. Large buyers of the difference in prices (20-24 thousand were popular. Up to 20 thousand). Today, January + February, everyone bought 22K x250 calls. January 30th offers x500 to buy. Approximately a surplus of calls, someone is gaining momentum in January + February, and the exposure continues. ATM 19.5 – 20,000 short trades – slope up. ”
However, for the foreseeable future, one of the threats to Bitcoin is whaling. CryptoQuant data shows that since March 2020, the number of whales on stock exchanges has grown to unprecedented levels.
With Bitcoin piling up despite an increase in whale deposits, Bitcoin could still see sustained gains of around $ 30,000 as institutional buying begins to pick up steam.