While Bitcoin price has set its highest weekly close ever, there are some concerned that a drop is imminent

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Bitcoin price has had a staggering 2020, more than doubling in price since the start of the year – with some predictions that it will continue to rise. Bitcoin recently rallied to an all-time high of 2017 but failed to get past the psychological barrier of $ 20,000.

Bitcoin has risen 150% in the past 12 months but has been left behind by the price spikes that several other cryptocurrencies have seen, many of which have soared amid a wave of interest in DeFi. While Bitcoin has been skyrocketing in price over the past few years, there are still a lot of people around the world who don’t own cryptocurrency. Estimates compiled by a leading chain analyst indicate that less than 2% of the world is exposed to Bitcoin to some degree.

Bitcoin has set its highest weekly close ever

A falling US dollar will help Bitcoin’s price rise. The US Dollar Index (DXY) is currently breaking below critical support levels. This leads to a relative increase in foreign currency value. Many people expect a further loss in the value of the US dollar to value the Bitcoin bull case.

After consolidating for several days, Bitcoin experienced one final push before the weekly candle closed just minutes ago. The price of the leading cryptocurrency is currently trading at $ 19,400, much higher than the weekly low.

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There are other traders who recently noted that Bitcoin has established its highest ever weekly close. Many consider this a confirmation that this is not a “double peak” of nearly $ 20,000 on a macro basis. Analysts are confident that BTC will continue to climb higher as it has made new highs.

While Bitcoin has achieved this technical achievement, there are some who are concerned that a drop is imminent.

Raoul Pal recently shared that according to Tom Demark Sequential, a key time-based technical indicator, he is concerned that a correction could happen:

 

Recently, he placed 98% of his liquid net worth into Bitcoin and Ethereum. Many are unsure whether his technical warning will be significant.

In addition, with the view that Bitcoin is likely to drop in the near term, CryptoQuant CEO Ki Young Ju agrees. As he thinks, Bitcoin may soon face a correction due to on-chain trends. Bitcoin miners have begun liquidating a significant portion of their holdings. Some see this as a sign that miners think Bitcoin prices will correct and are liquidating their assets in preparation for such an event.

Furthermore, the Whale Ratio is reaching worrying levels:

 

As can be seen, as long as the indicator is below the 95% threshold, the Bitcoin price is considered to be in the bull zone. Because when the indicator was 95% higher, Bitcoin fell 50% in March to $ 3,500.

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Only about 2% of the world’s population owns Bitcoin, does this affect Bitcoin price?

According to Willy Woo, a leading Bitcoin chain analyst, less than 2% of the world is exposed to Bitcoin right now. He specifically mentioned the 1.7% figure, which shows that 120 million individuals have been exposed to the top cryptocurrency:

As he explained, this simple fact shows that Bitcoin price will increase exponentially if Bitcoin is widely adopted. Woo specifically cites the growth rates of other paradigm-changing technologies such as the Internet and mobile phones. If BTC continued to grow at its current rate, he explained, it would be a technology with one of the fastest price spikes in history.

 

Woo explained in a recent analysis that he thinks Bitcoin will hit $ 200,000 or even $ 300,000 by the end of next year:

“My Top Model suggesting $200k per BTC by end of 2021 looks conservative, $300k not out of the question. The current market on average paid $7456 for their coins. You all are geniuses.”

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Many expect the proportion of the world that owns Bitcoin to rapidly increase during this market cycle.

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Millionaires alone are expected to allocate capital to this space in the coming years. The adoption of Bitcoin as a digital asset, an almost digital gold, was accelerated by the COVID-19 epidemic. Furthermore, Blockchain Capital discovered in an authorized survey that nearly half of all Americans think Bitcoin will be widely used in the next 5 to 10 years. Furthermore, almost a third think they want to buy the top cryptocurrency in the next five years.

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