Bitcoin in the second half of December
Bitcoin has attracted a lot of attention in the past 10 days or so, as the coin hit a new all-time high several times during this period. Originally, it reached its old ATH — the one from 2017 — at $20,000 around December 17th. However, this level did not even slow it down as it rushed towards the new record at roughly $23,500.
The price was slightly rejected, but it did not go far, Eventually, it returned on December 20th, making yet another ATH at $24,200. Once again, the price had a small rejection to deal with, but for the most part — it remained close to its ATH and next resistance.
On, December 26th, right after Christmas, the price made yet another ATH - this time, it surged to $24,980 before being rejected by the crucial resistance at $25k.
Many have seen this as Bitcoin's next big goal, ever since the $20k milestone was hit.
So far, the demand for the coin did not drop. If anything, it is likely to increase in days to come. As Bitcoin's 12th Birthday approaches. Bitcoin is currently so big and popular that it didn't even feel the heat that is consuming XRP after the US SEC recently filed a lawsuit against the coin's creator, Ripple.
What was it like for Ethereum in the past week?
Similarly to Bitcoin , Ethereum has seen a lot of success when it comes to the coin's price in the last 10 days or so. The coin's value is still far away from its all-time high, but Ethereum is slowly continuing up, and it is currently not far from being halfway towards its ATH .
As some may remember, ETH ATH was reached in early 2018, and it was $1432. Meanwhile, the coin's 52 week high, as reached only a few days ago, is $673.
Still, late 2020 has been an important period for Ethereum . The coin managed to start and complete Phase 0 of its ETH v2 launch, and it even started Phase 1 on December 1st.
The combination of the Bitcoin rally and great expectations of ETH v2 has caused quite a bit of demand for Ethereum , as well. Not to mention the DeFi sector which blew up on the project's platform earlier this year, plus all the apps and smart contracts that it usually has to deal with.
In other words, Ethereum has been a busy blockchain, and there is no indication that this will change anytime soon.
Until December 17th, the coin was held back by a resistance at $600. However, the resistance was finally broken just as BTC surged past $20,000. Since then, Ethereum was mostly trying to reach $700, although it never got far past $650. For the most part of the last week, it fluctuated between $600 and $650, and right now, it appears that its price might be preparing to have another go at its resistance.
What to expect from Bitcoin and Ethereum in days to come?
As usual when it comes to rallies, Bitcoin is the coin leading the market. While Ethereum certainly has its own reasons to grow independently, it seems to be following Bitcoin's lead.
Bitcoin itself, historically, saw its price trade sideways in the week between Christmas and New Year's Eve, with its price once again picking up in January of the next year.
Of course, this might not be the pattern that the coin will take this year — as Bitcoin adoption and demand grow, the rules of the game continue to evolve and change, just like the coins themselves.
Bitcoin 2021 price prediction
The stock-to-flow model has been extremely accurate at anticipating Bitcoin’s future price action as a direct result of the supply shock it experiences following each halving.
Based on this fundamental indicator, BTC’s scarcity is highly correlated with the value of the network. As this cryptocurrency’s rate of production dropped to 328,500 new tokens per annum in August, such a significant cut is expected to have serious implications in prices. Indeed, Bitcoin’s stock-to-flow doubled and the projected market value may increase by 10x if history repeats itself, which translates into a $50,000 Bitcoin by the end of Q1 2021.
Given the increasing demand from institutional investors who are looking to hedge against , the flagship cryptocurrency could double in price within months after achieving such a milestone which will help it surpass $90,000 by the end of 2021.