The first and largest cryptocurrency by market capitalization Bitcoin (BTC) soared to new yearly highs of $13,250. Bitcoin’s stay at $13,000 was however short-lived owing to price rejection. Formidable support kept the selling pressure in check while bulls eye the ultimate lift to $14,000.
$14,000 has been noted in past times as a major resistance level for BTC in mid-2019. In June 2019, when BTC hit $13,970, it immediately retreated to lows of $10,525 within 24 hours. In the 21 days that followed, BTC declined to $9,252, recording a 35% drop. It is been said that there is little resistance between $14,000 and $20,000 due to the previous bull cycle in 2017 ending abruptly, but that doesn’t mean BTC will have a smooth sail to a new ATH.
After the historic climb past $13k on October 22, Bitcoin consolidated within $12,700 and $13,037. Some analysts think that BTC may experience a short term pullback before a climb higher while Denis Vinokourov of crypto exchange Bequant, believes that in the near term, at least, consolidation would lead to a healthier uptrend for BTC rather than an exponential upsurge. This he said:
“Overall, markets are approaching territory that doesn’t offer much in the way of price discovery potential but, for healthy markets, one would expect consolidation as opposed to exponential one-way traffic.”
BTC/USD Daily ChartBitcoin (BTC) is presently trading at $12,974.
There are likely chances that BTC would see a continuation of its ongoing rally after a short consolidation period. Data from Skew indicates that all Bitcoin markets, including spot, derivatives, and options, are showing a high level of demand after the PayPal news.
Analysts expect the next consolidation range of BTC to be between $12,500 to $13,500 in the upcoming months before the next breakout.
Bitcoin options price probability chart. Courtesy: SkewRecent data from Skew indicated a 7% bet of BTC hitting or even surpassing its $20,000 ATH by the end of 2020. 11% betted for $18,000 while 14% indicated that Bitcoin would have reclaimed $20,000 by March 2021, bets for June 2021 stood at 18%.
A group of analysts however believe that Bitcoin will continue its ascent to the upside in the days and weeks ahead, especially due to fundamentals. Vinny Lingham, CEO of Civic and a partner at Multicoin Capital said:
“I haven’t been this bullish on #Bitcoin since 2016. Macro events are teeing us up for another bull run. BTC could go 3-5X in the next 12 months, no coincidence that this period is during the US election. Expect high volatility, but BTC likely won’t drop below $12k during this period.”
And with on-chain and market data continuing bullish signs for Bitcoin (BTC), top analysts believe that a 2017-style rally may be imminent.
According to a recent report by an online comparison resource finder which features 30 crypto experts, Bitcoin’s price is likely to reach $14,283 by the end of the year. While their average prediction stands at $14,283 by the end of 2020, other predictions point to a much higher price tag, for instance, S2F model creator PlanB.
An analyst sees BTC being in the first stage of an inverse Head & Shoulder breakout which may cause its price hitting $19,030 in the coming sessions. The Inverse Head & Shoulder is a bullish indicator that predicts a downtrend reversal.
The analyst noted that Bitcoin is now aiming for $13,829 after which it may climb higher towards the $16,510 level. This move would bring BTC closer to the 2017 structure at $19,030. This may somewhat be another confirmation that a 2017-style rally may be on the way.
Image Credit: Skew, Shutterstock
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