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Bitcoin Crosses Another Psychologically Significant Level of $28,000

December 28, 2020 at 11:22 by Mark Stevenson

On December 27, the price of the leading cryptocurrency continued to rise, updating a new all-time high (ATH) of $27,500. At 11:13 GMT on the same day, Bitcoin (BTC) rallied to $28,343 on Bitstamp and capitalization surpassed the $500 billion level for the first time in history.

Bitcoin price has been hitting new heights throughout all these days. Having fallen below $23,000 on Monday, the cryptocurrency broke above the $25,000 mark on Friday and $26,500 on Saturday. However, the rally above $28,000 on Sunday was preceded by a decline below $27,000. At around 21:17 GMT, the downtrend continued to $25,777.

At the time of writing, Bitcoin is recovering and trading above $26,700.

What level should Bitcoin traders expect next?

According to the well-known economist and trader Alex Kruger, the next target is $30,000. This is not only a psychological barrier but also a Fibonacci projection level.

Meanwhile, Mikael van de Poppe believes that Bitcoin price could reach $40,000. According to the analyst, a break above the key resistance of $25,800 is enough for a powerful new rally.

Read also: Robert Kiyosaki: Buy Bitcoin Now, Next Stop Is $50,000

Analysts also see several reasons for Bitcoin’s growth. One of them is the development of institutional interest in the cryptocurrency market throughout the year. Unlike in 2017, interest in cryptocurrencies has not increased in 2020. Instead, there has been an increase in institutional participation, according to Skew analysts.

As a reminder, the investment company Guggenheim Partners, under whose management assets are worth more than $200 billion, announced its intention to send part of the portfolio to the Grayscale Bitcoin trust.

Later, the volume of assets under the management of the Grayscale fund grew by 430% in 11 months. The total value of crypto assets managed by Grayscale has reached $16.4 billion.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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