Bitcoin Price Surge To Over $29k, Will BTC/USD Reach $31k?

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The Bitcoin price concluded 2020 with style, soaring above $29.2k and once more again, printing a new all-time high.

Impressively, the Bitcoin price closed the year by adding 25 percent in the last week of trading and steadying on the past day.

Effects of the Coronavirus

Behind what has been a year to reckon were several fundamental factors triggered by the effects of the coronavirus pandemic.

Specifically, a wave of central banks debasement not only sparked fees of inflation and capital flight from traditional markets but emboldened investors that Bitcoin and indeed crypto could be reliable alternatives.

They have, judging from the expansion of crypto and specifically Bitcoin prices over the last few months after halving.

Notably, prices have more than doubled—nearly tripling—in the last seven months, cementing Bitcoin’s position as a store of value alternative to gold riding on the internet and secured by the masses with a fixed supply.

Bitcoin Outperforming Gold, Bonds, and Cash

The 21 million BTC to ever circulate is an assurance to holders who are discouraged by the hyperinflation in some instances or fear of confiscation by banks in some instances whenever there are cases of capital controls like in Argentina or some African countries.

Therefore, considering how the Bitcoin price has been on a tear in a year marked with uncertainty, surpassing by several-fold gold and traditional instruments like bonds and cash, it is highly likely that in 2021, if the current impasses continue, safe havens—of which Bitcoin will feature prominently, will continue to outperform other assets, even causing a paradigm shift.

Bitcoin Price Prediction

The Bitcoin price is steady on the last day but 25 percent week-to-date.

At spot rates, the Bitcoin price is starting the year on a good footing after printing all-time highs on Dec 31.

From the weekly chart, it is clear that the BTC/USD is trading within a bullish breakout pattern. Immediate support is at $20k.

After prices reversed from the 78.6 percent Fibonacci extension level in March 2020, gains have been spectacular, even exceeding expectations.

Historically, price reversals from the 78.6 percent Fibonacci level often lead to a retest of the pair’s high, in this case, $20k.

However, the lift-off from $4k to $29k past $20k positions BTC/USD bulls to aim for $31k. It is the 161.8 percent Fibonacci retracement of the two-year range between 2019 and 2020.

With this setup, every low is technically a loading opportunity with immediate targets at $31k. A retracement from spot levels could see the BTC/USD fall back to $20k or consolidate above $20k before trend resumption.

Chart Courtesy of Trading View

Disclosure: Opinions Expressed Are Not Investment Advice. Do Your Research.

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