- Yesterday’s Bitcoin price prediction proven right as bulls post major gains
- BTC/USD pair posts fresh 2020 high of $13,235 on back of macro fundamentals
- With every significant resistance surpassed, all eyes are set on $14,000
- Overbought technical indicators warrant short-term correction in Bitcoin price prediction
Bitcoin price prediction – BTC all set to take down $14,000
The crypto markets are celebrating major moves in every cryptocurrency across the board. In a Déjà Vu of 2017, the explosive rally in BTC/USD pair has taken down every significant resistance on its way to touch $13,000 level. The crucial $12,000 resistance was crushed in a barrage of news, including institutional purchase and PayPal’s newfound love for crypto.
As the day comes to an end, the BTC/USD pair is posting fresh new highs for the year. The ‘Crypto King’ started the day comfortably in the clouds at $12,702 and has touched a new 2020-high of $13,200. These are significant levels in terms of technical analysis as all the major resistances have been overtaken with a massive buying spree, bullish long positions and robust fundamentals.
Today’s Bitcoin price prediction highlight has to be PayPal’s announcement that it will offer cryptocurrency support to its customers for shopping and other services. PayPal users residing in the United States can also use their accounts to hold, sell or buy various cryptocurrencies. When long-term crypto critics join the fold, the news becomes a cause for a celebration.
Bitcoin price movement in the last 4 hours indicates further up-move
The long bullish green candles on the hourly charts are evident of the celebrations that are currently underway in the crypto realm. BTC/USD soared past every major resistance that was withholding it back for the past few weeks. After multiple rejections, bulls first cleared $12,000 level and then quickly went on to conquer the $13,000 psychological mark in a matter of a few hours turning Bitcoin price prediction highly positive.
The sharp up-move involved a little rest at $12,450 level where bulls took some breath. The institutional buyers stepped up the buying spree to further propel the pair past the $13,000 mark. Technically, the pair has broken out of the ascending channel to post new 52-week high in the fourth quarter.
Since the pair has comfortably crossed $12,975 resistance, bulls will likely close the day above $13,100 mark. Conversely, the technical indicators have started flashing red on the hourly charts as the overbought theme is taking over the market. The ‘Relative Strength Index’ is approaching 80 mark, which indicates a highly overbought asset. MACD is sharply sloping up as well. These indicators reflect that a short term correction may be in the offing on the hourly charts.
BTC/USD 4-hour chart – Green bullish candles dominate the landscape
The 4-hour chart is approaching highly overbought levels. A daily close under $13,000 could indicate profit-booking as most daily traders have made decent profits in the past two weeks. Moreover, the $12,000 resistance hasn’t fully converted into a primary support level as yet. A little rest is ideal for the bulls further to build up accumulation stage at lower support levels.
A possible resumption of the bullish rally can happen only when the technical indicators cool down. Since multiple resistance points have been demolished, and Bollinger Bands have been stretched on the daily charts as well, it is time to consider a longer perspective. The rising 100-day moving average and 50-day EMA cross-over bring $17,000 into the picture.
Since Bitcoin price prediction has now entered the highly bullish territory, it is crucial to consider an alternate bearish scenario as well. Fake bull rallies are often a precursor to major bearish reversals. The upcoming US Presidential election and US dollar correlation can adversely impact BTC/USD price movements. The massive surge in gold prices amid a weakening US dollar will only benefit Bitcoin further. A declining US Dollar Index (DXY) does have positive repercussions for the crypto king.
Bitcoin price prediction – New 52-week high strengthens bulls
There are no stopping bulls in the coming days as BTC/USD posted new 52-week high today giving a highly positive theme to Bitcoin price prediction. The pair touched $13,325 and demolished any bearish wave that was sprouting on the charts. The ‘Triangle Pattern’ could not contain the Bitcoin price movement nor could the ascending channel stop it. In the past 24 hours, bulls have shown that they have the liquidity, volume and fundamentals to carry out a massive chart-breaking move.
The PayPal news only added more fuel to a rising rocket. The optimism around the next US stimulus deal also provided boost to the traditional markets. The substantial vertical rally may fizzle out to some extent, but the horse has bolted now and Bitcoin price prediction is firmly in positive territory. Major resistance at $12,000 and $12,970 region have all been taken down in one significant movement. As all eyes turn to $14,000, one thing remains clear that Bitcoin is the asset of the year.
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.