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Bitcoin Price Surges to $19,000 – Will the Uptrend Continue?

November 22, 2020 at 5:44 by Mark Stevenson

On the night of Saturday, November 21, the price of the flagship cryptocurrency Bitcoin (BTC) renewed its next annual maximum, closely approaching the $19,000 mark. At 02:25 GMT, Bitcoin on the Bitstamp exchange rose to $18,977, after which the price corrected.

Bitstamp BTC/USD chart by TradingView.

However, at the time of writing, the price of one bitcoin is trading at around $18,400. While many traders and analysts have made constant calls for correction or decreases, BTC seems to be on its way to reach the much-prized goal, $20,000.

Only 7% separates the cryptocurrency from the all-time high of $20,000, which was recorded in November-December 2017.

While the recent surge seems to be similar to the one seen in back 2017, this time around, institutional investors are said to have driven the price rally in 2020, while the rise three years ago was supported by speculative enthusiasm and panic buying by individual investors.

Nevertheless, according to Google Trends, which is used to measure general interest in trendy topics, the search keyword “bitcoin price” has declined in 2020 when compared with 2017.

This, however, indicates that FOMO (fear of missing out) does not dominate the market. Individual investors often tend to enter the market at the end of price increases. In other words, the increase in market entry by individual investors is widely considered to be a sign that price increases are approaching their peak.

Will Bitcoin continue the rally in 2021?

Let us remind you that lately there have been more and more statements by big investors that Bitcoin is capable of reaching new highs in 2021. In fact, some have said BTC is capable of replacing gold as a tool for preserving value.

Tom Lee, a managing partner of Fundstrat Global Advisors, recently said that this year bitcoin is “crushing all other hedging instruments and asset classes.”

“2021 could be the year of fireworks for bitcoin. Perhaps the best is yet to come, ”he added.

A similar opinion was expressed by the chief investment officer of the world’s largest asset management company BlackRock Rick Reider. According to him, bitcoin is a reliable mechanism that is “much more functional” than a gold bar.

Recall that in early November, the popular blogger PlanB said that he stands by his forecast of Bitcoin price growing to $100,000-$288,000 by December 2021.

Moreover, the Winklevoss brothers, the founders of the Gemini cryptocurrency exchange are making higher rates. As per their own analysis, they expect Bitcoin price to rally to $500,000.

We will also like to remind you that Michael Sailor, the head of MicroStrategy said that his company plans to store bitcoins for the next 100 years. MicroStrategy, a Publicly-traded billion-dollar software company is the first to invest part of its capital (about $250 million) in cryptocurrency.

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

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