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. „