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Bitcoin (BTC) just set another high in 2020, surpassing $ 18,000 for the first time in three years.
On November 17, the price of BTC climbed back to $ 17,858 after a sharp rise in volume that cleanly pushed the price through the $ 17,100 to $ 17,300 range that many analysts felt was a high resistance level.
According to Decentrader co-founder filbfilb, the price of Bitcoin could continue to rise in the short term if the major underlying supports hold.
The popular analyst tweeted the graph above and said:
“The current PA could still very easily result in a knockout blow to the golden ratio multiplier, currently at 19k.
As the weekly chart shows, Bitcoin is just a hair’s breadth away from pulling off the all-time high of $ 19,763 reached in December 2017, and over several time periods the Visible Volume Profile Range (VPVR) shows that there is has little resistance above $ 17,000.
Analysts had expected price to briefly consolidate in the $ 17,500- $ 17,700 range with some traders taking profit, but the bulls appear to be intent on pushing BTC higher. To date, Bitcoin has advanced 13.06% since breaking through the $ 16,000 resistance, therefore, a period of consolidation to build support for the next step is healthy and expected.
Regarding the fundamentals behind today’s price movement and possible near-term outcomes, Matt Blom, Global Sales Manager at EQUOS, said:
“The market has expanded higher, breaking through the trend channel and appears to be entering a crisis phase. With a strong bull market the tendency is to call a top, for me the question is at what point does the rally become volatile.
As BTC broke through the $ 17,000 level, there was a lot of talk about whether the price would reject near the 2017 high or break through “ resistance ” and climb to a new all-time high.
According to Blom:
“If we roll up to $ 19,050 this week, I would expect a pullback to the $ 17,000 level. There is a lot of new money in Bitcoin, they have never experienced a Bitcoin retracement! In the past, Bitcoin has retraced rapid movements, but this time it is missing an ingredient! The absence of reverse charge of positions purchased with leverage. “
In 2017, the rally was only led by retail traders and a huge amount of FOMO, but in 2020 the scenario is very different.
Throughout 2020, Cointelegraph reported on the growing trend of large Bitcoin acquisitions by institutional investors. The data also shows that the increase in volumes in the regulated Bitcoin and Ethereum derivative markets is a result of the involvement of bigger hands in Bitcoin.
Blom said:
“The fact that the market is now focusing its rallying efforts during the institutional workweek is a clear indication that real money has arrived, leading me to believe that the pullback many are waiting for may be shallow.
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