Experts: $22,500 is the next level for Bitcoin after $20,000

On November 30, Bitcoin prices updated their historic peak at $19,686, according to CoinGecko. However, the psychologically important $20,000 threshold has not yet been reached by the leading cryptocurrency.

ForkLog spoke to experts about the factors pushing Bitcoin’s price higher and what stands in its way to new highs.

The lead RoboForex analyst Dmitry Gurkovsky explained that attention to the cryptocurrency sector stems from the fact that traditional fiat assets are losing their long-term appeal, and standard instruments do not offer the needed returns.

“In one stream, ordinary users and institutional investors, who back in early autumn invested ‘excess’ financial resources in Bitcoin. The liquidity inflow ultimately pushed the leading cryptocurrency to record highs,” – the expert says.

According to his forecast, after a small correction Bitcoin will attempt to test the target level of $20 000. If successful, the odds of rising to $20,500–$22 500 will increase.

“Right now, moving above the above-mentioned range will be difficult, but when it comes to Bitcoin, anything can be expected. The strength of Bitcoin lies in market confidence, which remains fairly high at the moment,” – noted Gurkovsky.

Before clearing the $20 000 mark, investors need to come to terms with the idea that Bitcoin may trade at this level, says Exante managing partner Alexey Kirienko.

“When this happens, it’s hard to say — Bitcoin could quickly pass it, or it could spend a long time treading water or pulling back.”

However, the expert is confident that this peak will eventually be overcome. Bitcoin has already undergone several corrections of varying depth after $18 000 and $19 000. After them, a recovery followed, as market participants used price pullbacks to buy.

“With each new correction, the number of investors looking to lock in profits decreases, while many factors still favour growth, in particular, adoption of PayPal’s cryptocurrency, demand from institutional players, and appointment of Janet Yellen as US Treasury Secretary, who is considered a proponent of massive stimulus for the economy,” – Kirienko explained.

Against the backdrop of a 40% rise in Bitcoin in November, local pullbacks are to be expected. The latest drawdowns were minor and quickly bought up by investors, said Sergey Troshin, head of the Six Nines data centre.

“I think that in the very near term Bitcoin could break through the $20,000 level, and if the global backdrop remains as positive as it is now, without force majeure and ‘black swans’, by February Bitcoin could reach $25,000.”

Troshin noted that current pullbacks are easily tolerated by investors:

“Moreover, the institutional market, which aims to buy assets, shows no intention of selling anything, betting on growth. But I think explosive growth rates will stay in 2020; next year will be more moderate,” added the expert.

At the time of writing, Bitcoin’s price had updated its high to $19,900 on Bitstamp.

Earlier, Stack Funds stated that after breaking through key resistance levels Bitcoin needs a correction. The shift of market participants from the stage of “faith” to “euphoria” could push the cryptocurrency’s price to $86,000 as early as next year.

Subscribe to ForkLog news on Telegram: ForkLog Feed — the full feed of news, ForkLog — the most important news and polls.