Bitcoin (BTC) price hits fresh record highs as analysts predict continued demand

Bitcoin (BTC) price hit a new all-time high on Wednesday, breaking above the $20,000 mark and reaching as high as $23,777.

Fundamental analysis: High demand

Bitcoin’s rally this year is different from its previous ones, according to many experts, as this time it was fueled by surging institutional adoption and coronavirus-induced circumstances. 

The pandemic has left a huge scar on the global economy and industries around the world, resulting in a large number of layoffs and shutdowns of operations. As a result, global central banks were required to react with an unprecedented monetary and fiscal stimulus which involved printing trillions of dollars. 

While the stimulus has certainly helped in the short-run, many investors got concerned that traditional currencies like the USD will lose their purchasing power, prompting some of them to invest in Bitcoin.

Technical analysis: Fresh target locked

The latest rally means that Bitcoin is up by about 217% year-to-date despite correcting to $3,900 when the markets collapsed amid the coronavirus outbreak. BTC/USD is up over 18% in December only, just a month after gaining 42.6%.

The BTC buyers have now hit all short-term targets as they continue to head higher towards the next midterm target at $24.150. This is a Fibonacci 127.2% extension line of the drop from previous all-time highs to December lows. The next Fibonacci extensions comes just below the $30,000 handle. 

Summary

Bitcoin price hit a new all-time high of $23,777 on Wednesday, registering a 217% surge in the price action since the start of the year.