Bitcoin price breaks over $ 23,000: On-chain analyst thinks $ 55,000 is possible

The Bitcoin price has climbed the last major hurdle and is now making $ 100,000 possible, according to on-chain data.

Bitcoin ( BTC ) price has overcome the resistance between $ 21,000 and $ 22,000, rising to over $ 23,000 on December 17 . On-chain analyst Willy Woo said $ 100,000 is now a „ridiculously low“ target.

The $ 21,000 level was particularly important for Bitcoin Fortune to continue its rally in the short term. The exchanges‘ heatmaps showed a stack of sell orders between approximately $ 21,000 and $ 21,500. This means that BTC price had to break this area in order to maintain another uptrend.

The Bitcoin Top Cap Model now says that $ 100,000 is a conservative target

The exchange’s heatmaps show no visible resistance levels and areas with large sell orders above $ 22,000. In the short term, that means there is a good chance that BTC will continue its rally.

Woo said the BTC top cap model shows that $ 100,000 is a „ridiculously low target“ due to bullish market sentiment and the crisis on the sales side. He explained :

„We’re not yet at the point where the BTC top cap model is gradually bulging upwards. Let’s see how high it goes in 2021. $ 100,000 is a ridiculously low target with current developments. $ 55,000 -Dollar is the next milestone -> Bitcoin will be a macro-wealth container valued at $ 1 trillion. “
Woo emphasized that $ 55,000 is a milestone for Bitcoin because it would mean that BTC would have reached 10 percent of gold’s market cap.

Currently, the total gold market value is around 9 trillion. US dollars valued. Above $ 50,000, Bitcoin would gradually eat up a relatively large chunk of the market capitalization of gold, which remains the dominant safe haven.

Bitcoin order book and heat map

The order books of the exchanges and the development of the volume also show that the traders have placed their sell orders further up. They expect Bitcoin to rise to $ 30,000 after breaking the $ 20,000 mark yesterday .

If the momentum in futures , options and spot markets hold up in the coming days, it is very likely that $ 30,000 will become the first local spike for BTC.

Data from the options markets show: Institutions remain bullish

Institutional funds remain bullish on Bitcoin, according to Deribit Insights, the research arm of the largest cryptocurrency options exchange.

In the options market, call options represent buy orders and put options represent sell orders. So if the buyers of call spreads increase, it shows that a bigger Bitcoin rally is expected.

Deribit Insights said the exchange has been watching large buyers of call spreads. That indicates a bullish bias. They said :

Institutional funds seem to remain bullish. Large buyers of call spreads (20,000-24,000 popular, pre-20,000 breakthrough). Today January and February calls for 22,000 both bought x250. January calls for 30,000 bought x500. Some calls post gains, others hold positions from January and February. ATM 19,500 – 20,000 puts sold – bullish. „

MicroStrategy Funds Next Bitcoin Investment Through Massive Bond Sales

The software manufacturer is underlining its belief in Bitcoin with bond sales totaling US $ 650 million.

Major software company MicroStrategy (MSTR) announced on Friday that it had generated $ 650 million from bond sales to further invest in Bitcoin ( BTC )

Accordingly , on Friday, MicroStrategy disclosed that it had sold $ 650 million in its own corporate bonds, which have an interest rate of 0.75% with a term until 2025. The interest payments are due every six months, with these being settled on June 15 and December 15.

In the associated press release, the software manufacturer confirms that the funds raised are to be invested in the market-leading cryptocurrency:

„MicroStrategy intends to invest the net proceeds from bond sales in Bitcoin, provided the capital generated is not needed for other corporate purposes.“

The sales came just days after the company first announced that it would sell bonds to invest in Bitcoin. As previously reported by Cointelegraph , MicroStrategy originally intended to raise “only” 400 million US dollars. With 650 million US dollars, the software manufacturer could buy more than 36,300 BTC at the current price.

MicroStrategy caused a stir this year when the company made public that it had invested large parts of its assets in Bitcoin. In the run-up to the investment , CEO Michael Saylor said at the time that his company was „sitting on a $ 500 million melting iceberg“ that had to be saved.

MicroStrategy currently owns 40,824 BTC, which is currently equivalent to more than $ 734 million. Just by switching to Bitcoin , the company made just under $ 260 million in profit

However, some Wall Street analysts warn that MicroStrategy may now be too heavily invested in Bitcoin. Until recently, the volatility of the cryptocurrency was the main reason for many institutional investors to distance themselves from it. Citibank recently downgraded MicroStrategy shares because, in their opinion, the company is “disproportionately” reliant on Bitcoin.

MicroStrategy is probably the largest Bitcoin investor among the companies, but it is far from the only one. After listed companies such as Galaxy Digital (GLXY), Square (SQ) and Hut 8 Mining Corp (Hut-8) each invested between 36 million and 134 million US dollars in Bitcoin, the American insurance company MassMutual is for its part this week entered the market-leading cryptocurrency with 100 million US dollars .