KEY POINTS

  • Bitcoin breached $18,000 for the first time in three years
  • The number of people holding Bitcoin for a period of one year has increased
  • The number of Bitcoin being transferred out of exchanges also keeps increasing

Bitcoin just hit $18,000, and an analyst expects the next price target to be $22,000, a figure that is higher than the previous all-time high.

Bitcoin closed Tuesday at $17,679, a new 2020 high breaking the previous record of $16,726 which was just hit Monday. As of press time, the benchmark cryptocurrency hit $18,000, which is its highest price in the last three years. Bitcoin last reached $18,000 in December 2017, the month when it reached its all-time high price of just below $20,000.

With the previous all-time high on the horizon, people are looking forward to what’s to come after that. One analyst said Bitcoin could reach $20,000 and the first initial target is $22,000. According to Philip Swift, an analyst and founder of Lookintobitcoin.com, multiple indicators, including institutional buying and the 1 year HODL %, are still likely to increase soon, Cointelegraph  reported.

The 1 year HODL % refers to the number of people whose BTC addresses hold Bitcoin for at least a year. At this point, the one-year HODL wave chart shows these investors are growing in number. This is significant because, despite Bitcoin being up by 154% already since the start of the year, the number of people not selling their Bitcoins still increases. It implies that these investors are looking forward to a further upside in the price of the benchmark cryptocurrency and that they are not selling anytime soon.

Additionally, the funding rate has remained neutral. This refers to the balance between buyers and sellers particularly in the Bitcoin futures market. According to Cointelegraph, the average funding rate has remained at 0.01%, suggesting a balance between buyers and sellers, which also implies that the market is not yet overheated. If the market becomes overheated, a reverse in the price trend could happen.

Finally, more and more Bitcoin is being withdrawn from exchanges. In a separate article, Cointelegraph noted that a total of 145,000 BTC were moved out of cryptocurrency exchanges between Oct. 15 and Nov. 15. At the price point of Bitcoin on Nov. 15, the amount is worth around $2.35 billion transferred out of exchanges. 

Bitcoin was created in 2008 Bitcoin was created in 2008 Photo: AFP / JACK GUEZ