Bitcoin Prices (BTCUSD) Target $30,000 As 2020 Winds Down
Bitcoin prices look set to end the year at all time highs close to $30,000, as institutional buying frenzy continues to drive prices higher.
Reports from analysts at Glassnode suggests that increasing illiquidity may be making it harder to buy Bitcoin, resulting in a situation where larger money is now chasing lesser supply.
How much Bitcoin remains available for purchase or exchange? A large chunk of Bitcoin has already been mined. A lot of it has been seized by authorities in various countries from raids conducted on illegal operations. Then there are those lost forever in wallets whose owners have misplaced private keys. ASIC miners are also said to be in short supply, which could also make it harder to mine more coins in future.
Glassnode currently estimates that the total Bitcoin supply which is not liquid is 14.5 million BTC, leaving just 1.2 million BTC in the liquid pool. This comes up to nearly 80% of the total Bitcoin circulating supply in illiquid holdings.
The situation means that the Bitcoin price of $30,000 could be at risk in the short-term, heading into 2021.
Technical Outlook for BTCUSD
Bitcoin prices have met resistance at the 227.2% Fibonacci extension level at 29.284.99. A break of this area puts the $30,000 psychological price level at risk, targeting 30491.55 (241.4% Fibonacci extension).
On the flip side, a rejection at the current resistance opens the door towards 26973.82 (200% Fibonacci extension), with the previous resistance (now acting as support) at 23278.00 forming an additional downside target.