Will Bitcoin crash again in late 2020 and early 2021?

To say that Bitcoin (BTC) has performed rather impressively in 2020 is a major understatement. The coin has had a lot to deal with but, despite all the pressure, it still managed to come out on top.

But, let's start at the beginning and work our way through to recent events.

In January 2020, the Bitcoin price still sat quite low compared to the highs seen in the year before. The price started the year just above $7,100, although it did not stay down for long. A market rally started soon after, taking the coin up to $10,200 in only six weeks, by mid-February.

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What else has been happening to Bitcoin in 2020?

While the coin's price performance has been rather impressive to watch as it progressed from $5,000 to more than $19,000 for the second time in four years, it is important to recap what factors have fuelled this rally.

For example, one of the major developments in 2020 was the fact that companies such as Grayscale and MicroStrategy purchased massive amounts of BTC for their clients. This was greeted as a positive development, indicating that institutional investors are truly becoming interested in working with cryptocurrency and owning it, even though through an intermediary.

Then, the Covid-19 pandemic which spread across the world led the entire crypto market to crash, alongside the traditional financial industry. However, the quick recovery of crypto caused many big names from traditional finance, such as Paul Tudor Jones, to change their tune about digital coins.

Investors started going primarily after BTC and gold, seeking safe-haven assets, as equity prices plummeted across the globe. Wrapped Bitcoin (wBTC) on Ethereum blockchain started receiving a lot more attention, as the DeFi industry began to rise.

But, before that, in mid-May, Bitcoin finally saw its third halving – a process that cut its block rewards in half. After that, BTC traded sideways for several months, while the attention shifted to CBDCs (Central Bank Digital Currencies), at least until October of this year, when the coin's price started surging once again.

Another major event that is likely to have a major impact on BTC is the fact that PayPal (PYPL)

 added support for the coin only a few weeks ago. For now, BTC is only available in the US, although it will eventually become available worldwide in early 2021.

Bitcoin analysis: can it finally break through the $20,000 mark?

Earlier this year, many analysts were expecting BTC to potentially target its old ATH, but nobody predicted it to surge so high, so quickly. The coin's price doubled in value over the past three months, from near-$10,000 to almost $20,000.

With the new Bitcoin all-time high finally becoming a reality, the demand for Bitcoin technical analysis and Bitcoin chart analysis skyrocketed. Analysts and experts of the crypto industry rushed to provide their opinions on what is going on, and what might happen in the near future.