All vital statistics favor bitcoin continuing to set new all-time highs in price. But not only has the $20,000 price level been reached; Bitcoin is likely to go much higher altogether. Weak hands and scalpers squeezing every dollar out of their position are now being left behind as bitcoin keeps trending higher.
The Case For $20,000-Plus Bitcoin
It is pertinent for everyone to look beyond the trading value exchanges may depict at any given time. Every time someone looks at the price, that figure represents a temporary snapshot of the inevitable. Whether bitcoin is at $17,000 or $19,000 at any given time won’t make much of a difference.
The world’s leading cryptocurrency has now broken that next psychological barrier of $20,000 in search of even higher price targets. Most weekly red candles have failed to affect the price long-term throughout 2020 and it’s important to look past them now that we have eclipsed this pivotal mark.
When one begins to look at the core statistics, there is no solid argument against bitcoin staying above $20,000 in the future. All of the critical metrics confirm that fewer bitcoin are going around to buy at these prices. It is a mere matter of time until the price responds positively.
And the illustrious $20,000 level is merely a stepping stone for what is yet to come in the future.
1. Exchange Reserves Keep Dropping
One of my favorite metrics to track is the supply of bitcoin across centralized exchange wallets.
The chart below confirms that there is an ongoing downtrend of available supply since March 2020. This trend is not slowing down either, despite some minor increases in BTC values along the way. For some time now, there have been fewer than 3 million BTC in exchange wallets. A remarkable trend, considering how the value remained above $18,000 in recent months without any problems.
One can argue that this is still over 10 percent of the…