Bitcoin’s digital gold narrative continues to take shape with each passing day, with the cryptocurrency hitting a $0.5 trillion market cap for the first time.
On December 27, the cryptocurrency recorded a new all-time high of $28,355 on most exchanges. The new ATH came at a time when many were calling for a healthy price correction now, but once again, Bitcoin defied gravity.
Bitcoin loving weekends
For some time now, the weekends have been the start of a surge that saw BTC break new resistance levels. For example, on December 5 and 6, bitcoin surged from $18,658 on Saturday and closed at $19,375 on Sunday.
Similarly, on December 12 and 13 the coin surged from $18,044 and ended at $19,166 on Sunday.
Last week Saturday and Sunday is no different from the other bullish weekends. Most traders are believed to still be more relaxed because of the recent festivities. On Sunday, BTC got as high as $28,450 on some exchanges.
These on the weekends could be attributed to various reasons. One of the reasons is that on the weekends, trading volumes are different from the way it is on the weekdays. Studies show that if most of the week is bearish or facing severe bearish actions, the weekends are always different as more traders are bullish during the weekends.
An announcement (positive or negative) can affect traders’ actions and propel bitcoin upward or down. For a while now, different media personalities that are key to cryptocurrency have kept talking about bitcoin breaking new resistance.
An announcement like the above is playing a vital role in the current market momentum and will continue to play the role of the motivator for traders (new or existing).
Worth noting is that many indicators point to the possibility of a $50,000 new all-time high for bitcoin next year.
With announcements playing the most important role, other indicators will only play under it. Bitcoin is the most popular coin, and every day more retail and institutional traders are flocking to trade the crypto asset.
Next year will likely be no different as on-chain analysis reveals that more traders are hodling BTC and taking their stack off exchanges. With more traders still planning on hodling, it is almost certain that more scarcity and a price increase will follow.