All vital statistics favor bitcoin which continues to set new record highs in price. But not only has the $ 20,000 price level reached; Bitcoin will probably go much higher all the way. Weak hands and scalpers squeezing every dollar out of their position are now left behind as bitcoin continues to rise.

The case for $ 20,000 plus Bitcoin

It is relevant for anyone to look beyond the trade value exchanges that can be portrayed at any time. Every time someone looks at the price, that number represents a temporary snapshot of the inevitable. Whether bitcoin is $ 17,000 or $ 19,000 at any given time doesn’t really matter.

The world’s leading cryptocurrency has now broken that next $ 20,000 psychological barrier in search of even higher price targets. Most of the weekly red candles have not impacted long-term price in 2020, and it’s important to look past them now that we’ve overshadowed this crucial point.

When one starts looking at the core statistics, there is no solid argument for ensuring that bitcoin stays above USD 20,000 in the future. All the critical statistics confirm that less bitcoin is going around to buy at these prices. It’s only a matter of time until the price responds positively.

And the illustrious $ 20,000 level is just a springboard to what’s to come in the future.

1. Trading reserves continue to decline

One of my favorite stats to track is bitcoin’s offering on centralized exchange wallets.

The chart below confirms that there has been a continued downward trend in the available supply since March 2020. This trend is not slowing down either, despite some small increases in BTC values ‚Äč‚Äčalong the way. For some time now, there have been less than 3 million BTC in exchange wallets. A notable trend as the value has remained above USD 18,000 without any problem in recent months.

Source: CryptoQuant

It could be argued that this is still more than 10 percent of the circulating supply. And that’s a valid point, but it’s not significant in the grand scheme of things. If 90 percent of something is not available for easy purchase, the price of that item or asset will always go up. For bitcoin, the easily accessible supply is declining rapidly.

Some of this momentum is supported by all companies that suddenly invest in bitcoin. The information below shows how companies are approaching the world’s leading cryptocurrency today.

Neither of these companies seems to be in it for the short term. All of these treasuries helped further reduce the available BTC supply, creating a new level of scarcity that pushed us past $ 20,000.

2. Fewer people store BTC on exchanges

Making business intriguing is the constant Bitcoin netflow (the difference between bitcoin flowing in and out of exchange wallets) between well-known exchanges.

During 2020 there will be more negative outflows than positive figures. This is another notable trend as the value of BTC has risen spectacularly since March 2020. That alone tends to prompt more people to take their money off the exchanges. I plan to keep my money in a hardware wallet until we hit a six figure price.

Source: CryptoQuant

As more and more BTC exchanges leave daily than can be added to current deposits, the scarcity factor will become more apparent. Bitcoin already has a limited supply. Every month, increasingly large parts of the available supply are made inaccessible.

It was only a matter of time until the market shifted into high gear and shot past that $ 20,000 “resistance level”. This projected price hike occurred before 2020 came to a close, indicating that next year may prove to be an exception for bitcoin.

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According to data from Bitstamp, the USD price of 1 BTC has eclipsed its previous record of $ 19,666 set on December 13, 2017.

3. Dormant stock remains unaffected

One aspect of the bitcoin price that many entrants and speculators overlook is the dormant supply. The Glassnode The graph below confirms that 33.153 percent of bitcoin supply has not moved to a new address in the past three years. Owners of these BTC balances kept in the 2017 price run and are now doing the same.

Souce: Glassnode

As an analyst, these statistics indicate to me that BTC holders are not interested in selling until a much higher value becomes the new norm. That could be $ 50,000, or even six digits per BTC, as far as we know. More importantly, traders may not find this offering on exchanges or other trading platforms for some time to come.

Again, this is a chunk of BTC that no one has access to for any time yet.

4. New use cases for Bitcoin holders

Finally, I am impressed with how exchanges and other platforms aim to bridge the gap between bitcoin and decentralized finance. Lightning Labs, for example, has its Lightning Pool Liquidity Market, Introduced IOVlabs a new sidechain model to enable more flexibility with RSK and at MXC Exchange we plan one subscription product that offers return on locked BTC.

While this model doesn’t just apply to bitcoin, the world’s leading cryptocurrency is finally getting the support it deserves. Decentralized financing without Bitcoin will have no chance of survival in the long run. Additionally, there is a lot of liquidity among bitcoin holders who have no interest in selling at the current price.

If all of the above doesn’t cause bitcoin and its potential to go well beyond its $ 20,000 price tag, I don’t know what it will do.

This is a guest post from Alex Zha. The views expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Alex Zha is director of global operations for MXC Exchange, one of the largest one-stop cryptocurrency service providers in Asia. Before joining MXC, Zha worked at OKEx as a senior global marketing manager. Zha is a veteran of the cryptocurrency and blockchain industry and an experienced marketing and operations specialist. He believes blockchain technology and cryptocurrency will usher in the era of modern financial inclusion. He holds a master’s degree from the National University of Singapore.

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