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Analysts Expect Bitcoin to Rally to $19,000 Next Despite Spike in Funding

Published

1 Monat ago

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  • For the first time in weeks, Bitcoin saw a massive selloff yesterday evening that caused its price to reel to lows of $17,400
  • These lows came just over an hour after the cryptocurrency hit highs of $18,600, with this marking a fresh post-2017 high
  • Where the entire market trends in the near-term will depend largely on how Bitcoin continues trading in the time following this selloff
  • Bulls were able to push BTC back above $18,000 after these lows were set, but it has since drifted below this level
  • One trader is now noting that he believes a move towards $19,000 is likely for the cryptocurrency, despite rising funding rates

Bitcoin and the entire crypto market saw some immense volatility yesterday that came about after the benchmark crypto saw a sudden surge up to highs of $18,600.

The selling pressure that existed at this price level was so intense that it sparked a $1,200 selloff that sent the crypto to lows of $17,400.

From here it saw a “V-shaped” recovery and rapidly pushed back towards $18,000. It has been consolidating just below this level ever since.

One trader does believe that a push even higher is imminent in the near-term. He targets $19,000, noting that this could come about despite a rising funding rate and premium.

Bitcoin Faces Immense Volatility Following Latest Upsurge 

At the time of writing, Bitcoin is trading up just under 1% at its current price of $17,800. This is around where it has been trading throughout the past day.

Overnight, bulls were able to catalyze a strong push higher that sent it to highs of $18,600. The selling pressure here was intense, suggesting that this rally over-extended itself.

It then faced a sharp move lower that likely came about due to an abundance of late long positions. This move sent it down to lows of $17,400.

Analyst: BTC Likely to Continue Towards $19,000 Despite Selloff

One trader explained that the underperformance of altcoins seen as a result of Bitcoin’s recent volatility suggests that attention is about to shift back onto BTC and allow it to outperform the rest of the market.

He is targeting a move up towards $19,000, although rising funding rates do provide a reason for concern.

“Alts dumping hard here vs BTC… Thinking $19k is very realistic even though funding & premium started spiking here.”

Image Courtesy of Mac. Source: BTCUSD on TradingView.

Whether Bitcoin can gain a strong foothold above $18,000 should provide some serious insights into its short-term outlook.

Featured image from Unsplash.
Charts from TradingView.





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Bitcoin

‘Bullish year ahead’ — Bitcoin primed for Q1 2021 gains, strength index suggests

Published

3 Minuten ago

on

Dezember 29, 2020

By


The monthly relative strength index (RSI) of Bitcoin (BTC) shows the dominant cryptocurrency is primed for another rally.

Is 2021 an ideal time for a Bitcoin rally?

The RSI is a momentum indicator that measures whether an asset is overbought or oversold. When the RSI surpasses 75, it signals the asset is overbought, and when it drops below 30, it means the asset is oversold.

A pseudonymous trader known as “Crypto Capo” noted that the monthly RSI of Bitcoin is set to close above 80. Historically, when this has happened, BTC has saw a strong rally afterward.

Although the monthly RSI of Bitcoin is above 80, which is technically oversold, BTC’s RSI tends to become oversold for prolonged periods during a bull cycle.

The monthly RSI of Bitcoin. Source: Crypto Capo

Hence, traders often refer to an oversold RSI on a high time frame chart, like the monthly candle chart, to forecast an extended rally in the short term to medium term. The trader said:

“Monthly candle is about to close above 80. When this happens, bullish trend continues, with an avg. return of 1010.87%. Each cycle is shorter.”

However, the trader emphasized that one indicator cannot accurately predict the price cycle of Bitcoin. Crypto Capo explained that the combination of a few indicators could serve as guidance for the future. He wrote:

“You cannot base a prediction on an indicator. What we do is combining several methods to have a guideline for the future, to see what is more likely. But in the end, we adapt to what the price does in the present.”

“Bullish year ahead”

Traders have differing perspectives on where Bitcoin is headed in 2021, but most traders remain overwhelmingly bullish.

Cointelegraph Markets analyst Michael van de Poppe said he anticipates Bitcoin to reach $65,000 to $85,000 by next year’s end. He stated:

“I’ve got to revise my view on the potential level of $BTC at the end of 2021. Through this recent surge, I’m expecting it to be between $65,000-85,000 at the end of 2021. Bullish year ahead.”

Meanwhile, the options market is pricing in a 22% chance of Bitcoin achieving $120,000 by next year, which could also serve as a potential guideline on where BTC is heading in 2021.

In the short-term, however, some traders are cautious in entering leveraged positions. A pseudonymous trader known as “TheBoot” said the ideal scenario is to wait for Bitcoin to consolidate at $25,000 or enter after the next price upsurge. The trader explained:

“No rush to enter leveraged trades on $btc right here imo. Best would be to wait and long low 25k or even mid 24k. Alternatively, wait for the next leg up and then a dip from there.”

Cointelegraph previously reported that whales have been buying Bitcoin more aggressively since Christmas, which could buoy the mid-term bull case for BTC entering into 2021.