The bullish Bitcoin trend has printed $17,000 on the BTC/USD chart for the first time since 2017. Both traders and investors celebrate the milestone that once again establishes the crypto king as a credible, real-world asset. In early September, the bullish rally saw the price touch $18,483 high is in no mood to tone down anytime soon.
Memories of the 2017 crypto crash are still fresh in everyone’s mind. No wonder that the current parabolic trend is being compared to the 2017 ICO exuberance by many crypto analysts. However, there are numerous fundamental and technical differences in both the bull runs. From BTC whales and large institutional investors and technical supports, several aspects differentiate the current Bitcoin trend.
The 2017 hysteria is missing – A whole new technical ballgame
The current parabolic Bitcoin trend is unique and much more mature compared to the 2017 hysteria. The price dipped to September lows and then picked up the pace again. The short-term traders who booked profits once again entered the markets at a lower level. This trend has been the hallmark of the present Bitcoin trend – every dip has resulted in more accumulation by the bulls.
In the hourly timeframe, the trend may look zig-zag and stagnant. But the overall daily chart has a clear bullish pattern emerging after every dip. The re-emerging bull cycle has been evident in each cyclic rally. Thus, when BTC/USD dropped underneath the parabola, the resultant period marked a renewed uptrend.
Whenever Bitcoin surpassed parabola, the next bear cycle has ultimately turned into a blessing in disguise. There have been times when there has been a significant correction in the price. The most recent example saw the price remain above $16,000 support despite the chart’s minor dips.
The $16,000 support is key to current Bitcoin trend
There’s a strong resilience in the present Bitcoin trend to defend the $16,000 support. At $16,000, the fort was protected by the bulls, who immediately came to the rescue whenever the price tanked. The simple moving average at $15,800 further cements the support region.
The latest rally is built upon this strong foundation. Every short-term correction on the hourly charts has been dealt with well by the support at the $16,000 level. When BTC/USD crossed $17,000, bears were waiting ahead to trigger profit booking, which bought the price down towards the $15,500 level. Yet, the price quickly recovered to trader near $16,150 region and turned this micro bearish event into a buying opportunity.
Massive volumes power the underlying momentum from BTC whales and large institutional investors. The relentless buying means no dip goes empty as the bulls tap into their reserves to keep the buying action healthy. The optimism is helping ignore the overbought technical indicators that are flashing red signals.
With a euphoric rise in BTC/USD price, clear bull signs are emerging from the current bull cycle. As per IntotheBlock, approximately 99 percent of the addresses holding Bitcoin are now profitable. With Bitcoin price approaching the $20,000 mark, close to 100 percent profitability in BTC addresses will be observed soon. However, this also means that investors and traders can book profits at higher levels culminating in a pullback.
Bitcoin survived whale selling
Whales have been integral to the current BTC rally ever since it began in early August. Both large institutional investors and Bitcoin whales have bought huge quantities at every dip. So, when the prices touched $17,000, there was a tendency to book profits. Consequently, there was significant pressure on the BTC/USD pair, causing mild fluctuations in the price.
Despite the immense selling pressure, the Bitcoin price survived the turbulence. The recent price rise above $18,000 suggests that not only did the whales booked profits, they also built long positions. The price was relatively unaffected by short-term profit booking. The short orders were squeezed quickly by the price rise, and short-sellers were left wanting.
Long-term bullish Bitcoin trend is in play – Short traders beware
When one looks at the daily BTC/USD chart, it’s hard not to get excited. The parabolic Bitcoin trend has rekindled hopes that Bitcoin price will soon touch $20,000 and touch fresh all-time highs. The euphoric run is far from over, and exuberance is likely to continue till December end. Additionally, history has proven that December is a good month for cryptocurrencies.
However, over-exuberance can be the ‘Krypton’ for this rally. Even though mild corrections have taken the heat off this rally, the pair is yet to see a decent correction to cool down weekly technical indicators. Analysts are preparing a doomsday scenario for Bitcoin, but the pair has steered clear of such predictions till now. Such is the euphoria in the market that contrarian traders have been hurt many times over the past few weeks.
Critics will always doubt the credentials of a fast-rising asset. But this Bitcoin trend presents a whole new approach to crypto investing and is unlike anything seen in 2017.
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.