2020 – The Year Bitcoin Went “Too the Moon”
Bitcoin $25,000K: From Meme to Reality
by Bogdan Giulvezan
Guess who’s back in 2020? BITCOIN! This year alone, Bitcoin climbed from $4,935 (16 March 2020) to $29,173 (reached on the 31st of December 2020), coming from a $3,000 low reached back in 2018.
Can we say that’s impressive? Yea, I think we can. And let’s not forget that 2020 was also the year when Bitcoin went from being almost a joke among “serious” investors to a hot asset. The “big guys” went from stuff like “the market is too unpredictable, Bitcoin has no value” and other nonsense like that, to “Ok, how many hundred million are we going to invest in Bitcoin today?”
What about the now-famous comment made by JPMorgan Chase & Co CEO, Jamie Dimon: “The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.” Excuse me for a moment while I wipe my tears of laughter. And yes, I know that the comment was made back in 2017 but in market time, that’s just a heartbeat and besides, 2020 was the year when big names started to pour big bucks into cryptocurrency in general and Bitcoin in special.
Companies such as Square, MicroStrategy, and U.S. giant Massachusetts Mutual Life Insurance Company (MassMutual) have each invested hundreds of millions of US Dollars in Bitcoin, hedge funds are considering it a viable option and even PayPal adopted cryptocurrency this year. I’d say that’s a good run for Bitcoin! Will it continue in 2021? Let’s take a look at the chart.
Bitcoin Chart Rocket Analysis
Since late September, Bitcoin charts have been looking like a rocket taking off, with minor pullbacks, represented by only 3 small bearish candles on the Weekly chart. After breaking the historical resistance at $20,000, the Digital King exploded and posted three massive bullish candles that took it in close vicinity of $30,000. Currently, it’s trading at approximately 28,950 against the US Dollar, headed for the critical target at $30,000.
If you’ve bought Bitcoin during 2020, you are probably celebrating now, but the question on everyone’s lips is “What about 2021; will it keep going?” Well, that’s a tough one to answer, mostly because we are in uncharted territory – literally. What we all have to remember is that what goes up must come down and that price will eventually retrace lower, but that doesn’t mean that the uptrend will stop.
Nobody knows exactly how Bitcoin will trade in 2021 but the safest way to navigate is to keep track of the major levels, such as $30,000, $25,000, and $20,000. Look at the big picture and don’t get lost in the details. The lower levels will act as support and are good places to buy if price gets there. Of course, take it with a pinch of salt and do your own analysis because I am not saying that you should buy as soon as Bitcoin drops to $25K or lower.
Bottom line: overall 2020 has been a bad year for obvious reasons but it was amazing for Bitcoin, which thrived. The BTC rocket is not likely to run out of steam soon, but it’s possible to make a quick refueling stop. Keep your money safe and more importantly, keep yourselves safe! Have a great 2021, everyone!
