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Bitcoin (BTC) Hits All-Time High Above $27,800, Next Target $40,000

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by Bhushan Akolkar · 3 min read
Bitcoin (BTC) Hits All-Time High Above $27,800, Next Target $40,000
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With the latest rally, Bitcoin becomes the first financial service to cross $500 billion in market cap. The latest BTC price action and on-chain activity suggest that retail buying has suddenly spiked up during this holiday season.

Bitcoin (BTC), the world’s largest cryptocurrency continues to make new highs this holiday season. In a sweeping bull rally earlier today, the BTC price surged to hit its new all-time high of $27,806 surging over 10%. With the latest price rally, Bitcoin has hit a target by target at a time.

Bitcoin becomes the first financial service in the world to have a $500 billion market cap. Moreover, with this rally, Bitcoin (BTC) has taken its market dominance to over 71%. At press time, BTC is trading at $27,588 with its year-to-date returns at over 275%.

At a $515 billion market cap, BTC has moved past several financial giants like Visa Inc (NYSE: V), Mastercard Inc (NYSE: MA), JPMorgan Chase & Co (NYSE: JPM), PayPal Holdings Inc (NASDAQ: PYPL), and many others. The next immediate target for Bitcoin is Berkshire Hathaway Inc (NYSE: BRK.A) which is just $15 billion away (NYSE: BRK.A).

The recent Bitcoin rally is unprecedented and path-breaking. Over the last three days, BTC has been constantly adding $1000 to its price. With this, it has also pulled up its weekly gains to above 15%.

Next Bitcoin (BTC) Target at $30,000 & $40,000

As Bitcoin continues to make new highs, it enters into a price discovery mode. Thus, we don’t have any past reference points to accurately predict where the BTC can go from here. However, based on different data points of technical analysis, we can set further price targets. Based on the Fibonacci extensions, the immediate BTC price target is $30,000.

However, before today’s surge, many traders have been shorting Bitcoin futures on exchanges. This has eventually led to a short squeeze since short-sellers have been liquidating close to BTC’s previous all-time highs. As per the data on Bybt.com, over $100 billion worth of BTC futures has been liquidated in the last 24 hours. So just as the derivatives market sees an increase in sellers, the probability of short squeezes also remains high in the future.

However, one of the popular Bitcoin trader Philip Swift notes that the Bitcoin sellers have reduced in numbers during the recent price rally. He also notes that there’s been a major surge in the on-chain activity over the last week.

Philip further adds that “Large players, >1000btc wallets, have calmed down for 1st time in this huge run-up. We can see the number of >1000btc wallets decrease rapidly over the past week or so”. On the other hand, crypto wallets with 1-10 BTC (retail players) have steadily surged in recent weeks.

“So quick topline analysis suggests a lot of retail buyers are now coming in over the Christmas break. Potentially due to: a) hearing about BTC from fam/friends during the holidays now it is making new ATH’s. b) plus some potential switching out of XRP/other alts,” he added.

Cointelegraph Markets analyst Michael van de Poppe noted that BTC price can hit $40,000 during the next impulse wave.

Bitcoin News, Cryptocurrency news, News
Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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