Analysis: Bitcoin has exceeded $10,000 for 100 consecutive days, and may rise in a "parabolic" manner in 2021

As voting closed in the U.S. presidential election on November 3, Bitcoin marked a milestone — 100 consecutive days of five-digit prices.

Bitcoin price remains above $10,000

This achievement does more than just set a record for the amount of time Bitcoin has spent above $10,000. According to previous data, once Bitcoin has traded above these important levels for 100 days, BTC/USD trading volume quickly increases by an order of magnitude.

As Cointelegraph reported last week, the length of time depends on the price levels involved, but the outcome is the same — huge profits.

Quantitative analyst PlanB noted that Bitcoin’s untested 200-week moving average has now crossed $7,000 for the first time, further strengthening the argument that Bitcoin continues to move higher.

If historical patterns repeat themselves, the closer Bitcoin gets to its 2024 block reward halving, the higher its gains relative to its 200-week moving average could be.

Bitcoin price vs Bitcoin 200-week moving average. Source: PlanB / Twitter

Bitcoin will show a "parabolic" trend in 2021

Bitcoin’s price could go “parabolic” next year if it follows previous halving behavior, a prominent analyst has predicted.

A tweet on November 4 indicated that Mike McGlone, senior commodity strategist at Bloomberg Industry Research, believes that BTC will usher in a super bull market in 2021.

The bullish case, he said, is simply a balance of supply and demand — Bitcoin’s supply decreased in its most recent halving in May, while buyer demand for the digital currency is increasing.

“If previous patterns play out again, Bitcoin could go parabolic in 2021, as it did in 2013 and 2017,” he wrote.

“New highs are likely to repeat once again unless some factor we cannot foresee leads to a trend of increased adoption and rising demand contrasting with limited supply, but it is likely only a matter of time.”

McGlone was likely referring to the company’s recent bitcoin purchases and a pledge by PayPal users to adopt bitcoin and other cryptocurrencies on the platform starting next year.

Meanwhile, large institutions such as asset manager Grayscale and payment network Square will only continue to increase their Bitcoin holdings in 2020.