- Bitcoin price analysis refuses to leave bull territory despite overheated technical
- BTC/USD printed a fresh 2020 high of $17,073
- Fear-Of-Missing-Out behind exuberant buying spree
Bitcoin price analysis turns ultra bullish as BTC/USD touches $17,073 high
Bitcoin price analysis is now setting new benchmarks in bulls runs. The current Bitcoin price analysis has once again proven that mature assets can defy technicals to achieve new highs. Despite being in an overextended bull rally, BTC/USD is pushing higher to touch new annual highs. The price has confidently settled above $16,500 and is now challenging higher resistance at $17,000 and $17,250 next.
There’s a surprising aspect of the current BTC rally. It is performing positively well during the bull markets, but at the same time, it is also gaining ground when markets shudder. Bitcoin participates in global market rallies and again rises when geopolitical tensions spurt courtesy of its safe-haven credentials. Crypto enthusiasts love this dual nature of BTC and are all praises for an extended bullish Bitcoin price analysis.
In 2020, Bitcoin has performed at par or even better than gold. Bitcoin is here to stay, and its mainstream appeal is only going to rise further. Many conventional investors have jumped on the BTC bandwagon.
Bitcoin price movement in the last 4 hours shows BTC/USD consolidating above $16,500
There’s no stopping the current bullish Bitcoin price analysis. The price has pierced above critical resistances on the back of rising volumes. Both day traders and institutional investors are powering the rally higher. The price looks set to close above the 10-week EMA, which at present stands at $15,613. It reflects the strong bullish Bitcoin trend as pivot points will serve as accumulation areas where bulls can load up the asset during corrections.
The buying action evident in the volume shows that the bulls use every minor dip as a buying opportunity. If bears are expecting a massive correction, they may be in for a disappointment. The moving averages are gradually sloping upwards. The relative strength index is bordering on the overbought region and shows that bulls are firmly in the driving seat. The buyers are on the path to close the day above $16,500 to further target $18,750.
BTC/USD 4-hour chart – $17,000 beckons amid overbought technical indicators
The Bitcoin price just touched $17,073, which is a new high for 2020. The current Bitcoin price analysis is extremely bullish and is relentless as the buyers are charging ahead to touch $17,200 resistance. The pair is moving upwards even as the technical indicators are flashing red signals on the hourly charts. Bears are sitting on the sidelines since bulls have used minor dips to accumulate even more BTC.
Conversely, BTC/USD needs to move under the 10-day EMA at $14,800 to create a bearish overtone. If any correction materializes, the price can quickly move under the $14,800 level to touch new lows of $14,000. Also, BTC/USD touching $17,073 will move the sloping averages even higher to settle at higher support levels above $16,200.
Further upmove in the BTC/USD hourly charts will depend on the supply-demand equation. Also, RSI can face severe challenges above the 70 mark, and momentum can weaken going further. Bulls will look to settle the day above the 50-day simple moving average at $16,500, helping retain the uptrend. On-chain data suggests that whales and large institutions are rallying behind BTC as new 2020 highs beckon the pair.
Exuberance or safe uptrend – Bitcoin trend divides analysts
Bloomberg’s Mike McGlone thinks that Bitcoin price is well on its way to touch $20,000. At such a price, BTC‘s market capitalization will cross the $1 trillion mark, which in itself will be a historic landmark. He further says that the uptrend will continue next year, and 2021 will see BTC touch even greater heights.
McGlone and many other crypto analysts believe that the current BTC bull rally is sustainable. The rally is built upon fundamental and macro factors that mimic a mature asset. Peter Brandt, a famous trader, shares similar sentiments and comments that the current rally will go higher. Tom Fitzpatrick goes even further, saying that BTC/USD can touch $318,000 by the end of next year.
Critics, on the other hand, believe that it is time for Bitcoin to cool down as exuberance can hit the pair hard. The ‘Fear-Of-Missing-Out’ is driving the market, and traders will land in a soup if excessive selling takes over.
Bitcoin price analysis conclusion – BTC/USD needs a healthy correction
The 4-hour chart is clearly in an uptrend as the pair shot towards a fresh 2020 high of $17,073. As technical indicators reach overheated levels, bulls must maintain momentum for further bullish Bitcoin price analysis. A minor correction will be healthy for the pair in the short term.
Whether or not the current rally will sustain for a few more days depends on BTC whales and institutional investors. The rising liquidity is a sign that money is pouring into Bitcoin. There is considerable resistance near the $17,000 level, where sellers can take charge.
Profit booking can turn the tables and bring the pair down towards the $14,800 support level. A possible bearish down move, if exaggerated, can trigger lower support levels near the $14,100 and $13,700 region.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.