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Bitcoin Sets New All-Time Highs Above $20,000; Leaves Trail of Bear Blood

Published

2 Wochen ago

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  • Bitcoin is officially trading at fresh all-time highs, with the crypto’s price racing as high as $20,800 this morning before losing some momentum and hovering just below this level
  • Where the crypto trends in the mid-term should depend largely on whether or not it can turn this momentum into another parabolic uptrend
  • One trader believes that this is a strong possibility, and could be induced by an imminent short-squeeze
  • The break above $20,000 has put virtually every bear in Bitcoin’s history underwater, with it now entering uncharted territory as the world sees its first $20,000+ Bitcoin
  • The coming few days should provide investors with some serious insights into where the entire market will trend in the days and weeks ahead

Bitcoin is officially trading at the highest prices it has ever seen, with its long-held bout of consolidation beneath $20,000, ultimately resulting in it seeing an explosive move higher.

Where the crypto trends in the mid-term should depend largely on whether or not it can sustain its current momentum, as it now needs to form support between its current price and the lower-$20,000 region.

The massive quantity of underwater short positions does seem to indicate that upside could be imminent in the days ahead as bears capitulate and close their underwater positions.

Bitcoin Enters New Epoch: Price Breaches $20,000

At the time of writing, Bitcoin is trading up just under 6% at its current price of $20,550. This is around where it has been trading throughout the past few hours, with the selling pressure seen in the upper-$20,000 region proving to be significant.

BTC rallied as high as $20,800 today before it found some resistance that slowed its ascent.

It is important to note that the break above $20,000 does appear to be resulting in a short-squeeze, leading to further upside.

Every BTC Bear is Now Underwater

Except for any bear who shorted $20,800, virtually every Bitcoin short-seller is currently underwater.

The massive quantity of short orders laced throughout the upper-$19,000 region are likely all being – or on the cusp of being – liquidated, which could create a squeeze that sends BTC rocketing higher.

“Everyone who has ever gone short in the entire history of bitcoin is now underwater. Congrats fellow bulls,” one trader noted.

Image Courtesy of Byzantine General. Source: BTCUSD on TradingView.

The coming few days should shine a light on where the new support and resistance levels are established.

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

11 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.