Quick take:
- Bloomberg’s Crypto Outlook report for December forecasts a $50k resistance level for Bitcoin in 2021
- This will bring its market cap to $1 Trillion
- $10k will be Bitcoin’s support next year after serving as a resistance in 2017
- Bitcoin’s adoption is increasing and thus providing a firmer foundation for BTC
- Bitcoin might stall between $19k and 20k in the short term
The team at Bloomberg has released their Crypto Outlook report for the month of December. According to the report, the $50,000 price zone will most likely be Bitcoin’s major resistance area next year, 2021. Additionally, $10k will be Bitcoin’s support after this level served as resistance in 2017.
$50,000 is Potential 2021 Bitcoin Resistance; Support Is $10,000. Bitcoin will maintain its propensity to advance in price into 2021, in our view, with macroeconomic, technical and demand vs. supply indicators supportive of $50,000 target resistance, implying about a $1 trillion market cap. The $10,000 mark has shifted to a critical support level after serving as the crypto’s resistance mark since 2017.
2020 has Jumpstarted Bitcoin’s Adoption
The report went on to point out that 2020 will most likely go down in history as the year Bitcoin adoption took center stage.
The year 2020 will likely be looked back upon as key to Bitcoin’s mainstream evolution, in our view. Strong inflows in regulated exchange-traded products, futures open interest, addresses used and allocations from corporate treasuries, and some billionaires, solidify the 2020 annual price of about $10,000 as foundation support.
Bitcoin Might Stall Around $19k – $20k in the Short Term
In terms of short-term price action, the report by Bloomberg explained that Bitcoin could stall around $19,000 to $20,000 for a few months. At the time of writing, Bitcoin is trading at $18,900 after getting rejected at the $19,600 price level earlier today.
The weekend is once again on the horizon and so is Bitcoin’s weekly close on Sunday. The last weekly close was a strong one at around $18,100 and Bitcoin repeating a similar feat this week, will still be bullish for the King of Crypto.
However, if the bearish environment persists, Bitcoin could find some short term support at the 50-day moving average at around the $16k price area.
