Bitcoin (BTC) has been hovering under the key resistance of $51K for the past week despite the market sentiments growing bullish in the holiday season and earlier today it finally managed to breach it. The top cryptocurrency is trading at $51,088 at the time of writing with a 3% increase over the past 24-hours.
After an eventful first quarter of 2021, the crypto market registered two massive market corrections of over 50% during the second quarter. However, things started to look bullish again with October as BTC and several other altcoins hit new all-time highs, but November and December turned bearish again.
BTC is now looking to gain back some bullish momentum towards the end of December mimicking the start of the bull season last year. The circumstances also seem quite similar since COVID’s new variant omicron along with growing inflation and financial stability could again make Bitcoin the go-to store of value.
Will Bitcoin see a supercycle or 2017 like downfall?
The last bull season saw Bitcoin rise to a new ATH near $20K in December 2017. After BTC topped the bull market in December, altcoins surged to new highs in the first quarter of 2018 and then the whole crypto market entered a four-year-long bearish phase.
A lot has changed over the past year as BTC has now become a genuine parallel financial investment market as compared to its status as a “passing fad” and “bubble” in 2017. Most of the institutions watched from the sidelines as retail carried the market for as long as they could. However, institutions have not just adopted bitcoin and other cryptocurrencies in 2021, they got their hands deep with several new government-approved crypto ETFs launching in a number of G-20 nations.
Crypto pundits have admitted that the $100,000 BTC price prediction was a little far-fetched, however, they belive fundamentals and markets have become strong enough to carry the bull run into 2022.