Bitcoin keeps delivering surprises this December. Since it broke above $20,000, there is no turning back and the flagship crypto appears to be heading higher towards $30K supported by institutional inflows. Now, analysts and traders mull what is in store for bitcoin after a historic Boxing Day.
After a historic day where the headlines hardly kept up with price action and BTC set a new all-time high above $26,500; analysts and traders now seem to be turning their attention to what might be in store for the digital currency over the next five days as 2021 comes to an end.
While almost an 8-9% daily gain may seem pittance compared to Bitcoin’s historical volatility; there was an explosive 42% rally in 2019; as Messari founder Ryan Selkis pointed out, the current rally featured just the second $2,300 candle in the crypto’s history:
Bitcoin’s first $2300 candle took 8.5 years.
It’s done that again today. pic.twitter.com/FfiCrG9OhX
— Ryan Selkis (@twobitidiot) December 26, 2021
Maybe caught in the euphoria, some of the traders are already looking forward when the daily candles eclipse five figures:
On December 26, Luke.hodl (@Coinosphere) asked when Bitcoin will have its first $10K daily candle.
Positive headwinds and proponents are swirling for BTC’s next step. Bitcoin at the moment is trending on Twitter with 164,000 recent tweets. It has comfortably outstripped the next highest trending item, the interesting archeological discovery of a street food stall in the Pompeii ruins.
Furthermore, according to previous reports, the recent rally has put Bitcoin back on the postulated path plotted by the popular Stock to Flow (S2F) model that predicts a price of $30,000.
Another renowned folk metric indicated that BTC mania still has a long way to surge towards 2017 peaks too. Based on data acquired from Google Analytics, the search history for the term ‘Bitcoin’ is barely at 20% of all-time high levels:
Google Trends data:
Searches for 'buy #Bitcoin' are around 1/5th of their all-time peak
Will searches eventually 10x the last peak? It has begun. pic.twitter.com/MUgRfPsvlD
— Alistair Milne (@alistairmilne) December 26, 2021
In general, the positive sentiment and majorly parabolic price action have an increasing number of investors and traders accumulating at ‘30k by the 30th”; a $30,000 price on the 30th of December 2021:
Retweet for 30k #BTC by the 30th
— Stacking (@StackingUSD) December 26, 2021
Is There An Implosion At The Top?
Despite the positive sentiment and BTC price action that puts Cape Canaveral to a blush, some traders and investors are already lining up possible short positions. One trader is calling for a blow-off top in the next two weeks:
Update – Weekend blow off in full motion.
I suspect the hammer will come within the next 2 weeks pic.twitter.com/3xAirpOJrz
— Crypto Leo (@CryptoLeos) December 26, 2021
While for now, it is a minority sentiment, he is not alone and thinking turbulence could be ahead for BTC. On Christmas Day, $2.3 billion worth of bitcoin futures expired, and that has historically resulted in choppy markets.