KEY POINTS

  • Bitcoin reclaimed the $19,000 level Monday
  • More public companies are buying Bitcoin
  • Still, there are many sellers near Bitcoin's previous peak

With Bitcoin reclaiming the $19,000 position, analysts are predicting one final push that would allow the dominant cryptocurrency to surpass $20,000 in the weeks ahead. 

"We have witnessed a large move up over the weekend, with MicroStrategy's efforts to increase Bitcoin holdings from several large players bringing with it fresh optimism. Our belief is that we will see a breach of $20,000 in the coming weeks," Matthew Dibb, chief operating officer of Stack Funds, told Coindesk.

Bitcoin closed Monday at $19,272 in another wildly volatile day for Bitcoin. It marked the second straight day that the benchmark token closed above $19,000, five days after that support was breached.

The recent pullback is just normal during bull runs as a way to recharge ahead of a bigger ascent, noted Delphi Digital in a report. The recent decline on Dec. 1 was reminiscent of the pullback in February 2017, when Bitcoin briefly peaked at $1,200, only to decrease by 20% afterward. That decline, however, was short-lived. The dominant cryptocurrency went upward to just below $20,000 by December the same year.

The current rally break appears to be just a resting period before a resumption. The large movement over the weekend was because companies like MicroStrategy were increasing their Bitcoin holdings, Dibb said. The billion-dollar company has raised $650 million through a convertible senior note sale to fund Bitcoin purchases.

Another public company, high profile insurance firm MassMutual, recently announced it bought $100 million worth of Bitcoin. While the amount is just a drop in Mass Mutual's $235 billion stash, it is noteworthy as it comes from a company that is 169 years old. "In the business of measuring risk, it could wield an outsize influence on Bitcoin's perception among mainstream investors," Coindesk added.

Whether Bitcoin will go above $20,000 or not is anyone's guess because of the record number of sellers at the $19,000 level. According to Patrick Heusser, head of trading at Crypto Broker AG, the breakout could remain elusive. "The topside is still kept with lots of selling orders, possibly from miners," he told Coindesk.

Another possible contributing factor to the decline is the fact that asset management firm Grayscale, where institutions invest, will close over Christmas. With no buying from institutions, it will be interesting to see how the rest of the market will manage toward the end of the year.

Bitcoin Price Prediction In this photo illustration, a visual representation of the digital currency Bitcoin is seen in water in London, Aug. 15, 2018. Photo: Dan Kitwood/Getty Images