Why one analyst says Bitcoin ‘is on the cusp’ of busting through $20K

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Why one analyst says Bitcoin ‘is on the cusp’ of busting through $20K


The market sentiment around Bitcoin (BTC) is mixed, as the BTC price dropped almost immediately by 10% right after hitting its previous all-time high at $19,892 on Dec. 1.

Nevertheless, some analysts and fund managers anticipate the dominant cryptocurrency to rise past $20,000 in the short term. But others are adamant that there will be another correction first, as seen in previous bull cycles.

Bitcoin sees a “minor” 10% drop
There are many compelling reasons to believe that a deeper Bitcoin correction is coming. In the past, multiple 30% to 40% pullbacks accompanied major uptrends such as in 2017. Thus, the current BTC correction of roughly 10% from the new all-time high is relatively minor by comparison.


Meanwhile, Mohit Sorout, the founding partner at Bitazu Capital, argues that Bitcoin could soon enter a bigger, multi-month rally. He emphasized that the medium-term outlook of BTC remains highly positive despite the price failing to break the key psychological $20,000 barrier upon its first attempt.

Bitcoin price was rejected right before $20,000 with a strong reaction from sellers across the spot market. As Cointelegraph reported, on-chain analysts attributed the drop to a combination of miners and whales selling.

The futures market took a hit as well following the initial spot-driven sell-off. The derivatives market was already overheated before the drop, reaching as high as $23,000 on the Chicago Mercantile Exchange alongside a surging BTC futures funding rate and a record-high Fear and Greed Index of 95.

Since the market was swayed toward buyers, this meant that if a minor drop occurs, the probability of a larger drop caused by cascading liquidations was high. This resulted in the drop that resulted in BTC bouncing off the $18,000 support area.

https://cointelegraph.com/news/why-one-analyst-says-bitcoin-is-on-the-cusp-of-busting-through-20k