WMA: Bitcoin finally breaks above $20,000 to set new ATH
Get the weekly summary of cryptocurrency market trends, news, and forecasts!
This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $662 billion.
- Bitcoin increased by more than 20% to reach as high as $24,000 this week.
- Ethereum gained more than 10% to trade over $640 again.
- XRP increased by nearly 10% throughout the week.
- Warp Finance lost $7.7 million in a hack attack.
Crypto Trends 14th – 20th of December 2020: PERFORMANCE & ANALYSIS
The cryptocurrency market puts an end to one of the most profitable weeks in its history. After the primary crypto broke far and beyond its all-time high (ATH), most of the altcoins started trading in green and overcoming their resistance levels as well. Good news came from the DeFi sector too, where many protocols registered substantial gains.
In the last seven days, the cryptocurrency market added more than $100 billion to its market capitalization to showcase an impressive amount of over $662 billion.
Bitcoin showed signs of a spectacular surge as soon as the week started. It pushed beyond the psychological resistance level at $20,000 on Wednesday, and it didn’t stop rising until Saturday when it registered a new ATH at $24,085.
At the moment, Bitcoin is trading at around $23,500, and it is looking toward the $23,880 resistance level, which once broken could propel the most popular crypto in the world above its recently-set ATH.
As the second crypto by market cap, Ethereum followed in Bitcoin’s steps throughout the week. It managed to gain roughly 10% and break above its own psychological resistance at $650. On Sunday, it lost a few points in what seems just a glitch in what should be another impressive surge from the first altcoin before the year comes to an end.
Ethereum is now trading around $645 and trying to avoid the nearest support level at $636.
Ripple’s XRP wants to end the year on a high, and it can only do so with impressive surges like the one it registered this week. After a 10% increase in price, XRP is trading now at around $0.573. The closest level of resistance is at $0.6, while the nearest support lies at $0.52. Climbing above the $0.65 crucial resistance level should be seen as this year’s accomplishment for one of the most under-performing cryptocurrencies of 2020.
Elsewhere, the DeFi sector managed to add almost $2 billion to the value of locked protocols, which now sum up to $16,50 billion. Among the best-performing protocols was Augur, which increased by nearly 20%.
This week wasn’t all milk and honey for the cryptocurrency market as another DeFi protocol, Warp Finance, was the victim of a flash loan attack that stole more than $7.7 million worth of stablecoins from its vaults. The event shows that decentralized finance projects are still vulnerable to common hack attacks.
What’s in the News?
- The Chief Investment Officer of Guggenheim, Scott Minerd, said that Bitcoin’s price should be $400,000.
- Coinbase has reportedly hired Goldman Sachs to lead its upcoming IPO preparations.
Next Week’s Market Forecast
The cryptocurrency market is closing in on the end of one of the most tumultuous years in its existence. Next week should see it surge even further as the news of several countries rolling out COVID vaccines should increase the positive sentiment across all financial markets.
Bitcoin holders worldwide must be all smiles right now as BTC shows signs of stability above $23,000. It is interesting to see where BTC will rank at the end of the year and whether it will be able to continue its rise throughout historically value-damaging January.