Bitcoin price sees pullback, but bulls still marching toward $20K

The price of Bitcoin has increased by 36% in the last 35 days, showing a strong rally.

Throughout the past 11 years, Bitcoin price has moved in cycles.

One of the most prominent narratives, among many others, is the block reward halving, where roughly every four years, the Bitcoin blockchain cuts in half the amount of BTC mined.

If a similar pattern follows, the price of Bitcoin will likely hit $20,000 in March 2021, an analyst known as Ceteris Paribus said.

Three reasons could prevent Bitcoin from seeing a big pullback in the near term.

"Light," a pseudonymous Bitcoin derivatives trader, said, "Market structure is distributed with no exchange monopolizing price discovery. spot is leading derivatives. make of that what you will." The continuous increase in the trading volume of LMAX Digital, Coinbase, Bakkt and Binance demonstrates the dominance of the spot market in the recent uptrend.

Lastly, the staircase rally of Bitcoin supports the argument that a large price drop has become less likely.

Since alternative stores of value, including gold and Bitcoin, are priced against the dollar, the recovery of the DXY could negatively affect BTC. Second, Bitcoin market sentiment is demonstrating FOMO-level excitement - the fear of missing out - which raises concerns of an overheated rally.

Bitcoin traders Michael van de Poppe and Nick Cote both emphasized that the rising DXY could be a problem for BTC in the near term.

The DXY aside, gold, Bitcoin and stocks have all fallen in tandem in the last 24 hours, demonstrating a high level of uncertainty in the market.