- Bitcoin price soared to $18,483 in an attempt to break major resistances above
- Price retreated to the safety zone between $17,858 and $17,280 as selling pressure increased
- The 55-day SMA is providing support to the BTC/USD at $16,780
- Minor correction on the hourly charts will prove healthy as bulls are active near $17,200
Bitcoin trend repeats 2017 history – BTC/USD touches $18,483 high
The ultra-bullish Bitcoin trend has once again pushed BTC/USD beyond the latest highs. Today, the Bitcoin trend surged through $18,000 resistance to a new 2020 high of $18,483. The price pierced through Bollinger Bands and broke past the resistance at $17,800 with rising volume. Once past the resistance and establishing a new high, the price corrected lower towards the $17,880 level.
The past few days have been pretty eventful in the BTC/USD cycle. The bears were not allowed to bring the price down as all hurdles to $18,000 were broken with relative ease. Now, BTC/USD trades in a positive zone as lower supports have moved up, and the moving averages are also sloping upwards. A sharp correction on the hourly charts happened expectedly and took the price towards the $17,870 support region.
BTC/USD 4-hour chart – Minor correction post a new multi-month high
Traders and investors are cheering along as BTC/USD breaks new ground. The pair has reclaimed many significant levels that it lost in the 2017 bear downtrend. The price trades above the $17,800 mark comfortably, and technical indicators have cooled down after the sharp correction downwards in the hourly timeframe.
The healthy correction also helped retrace the 50 percent upmove that started from $16,570 and ended at a new 2020 high of $18,490. A vital support area lies around the $17,200 region as the 61.8 percent Fibonacci retracement firmly holds the pair. The pair also boasts of a crucial bullish trend line that has supported the pair all along its journey from the $16,800 level.
In a bear scenario, the break below the $16,200 support line will extend beyond $15,500. Any significant correction is likely to hold at this point and then bounce back towards $16,200 support at the 55-day SMA line. On the upside, the Bitcoin trend will have to take down $18,000 once again and close above this crucial level. If bulls can maintain a relentless momentum, the rally can stretch towards the $19,000 level.
Bitcoin trend in the past 24 hours shows underlying bullish resolve
As long as the 55-day SMA holds the fort and moves upward gradually, the BTC/USD pair will remain highly bullish. The upwards trajectory can face minor hurdles along the way near the $18,580 region. The pair may test $17,000 during the ongoing correction as hourly RSI readings cool down. The MACD on the daily charts is now firmly established in the bullish region.
The daily chart still has green candles and bullish structures to justify the uptrend that began in early November. Even though the current rally seems overextended on the daily timeframe, the pair has enough room to move along a rising price channel. The price is also ignoring the bearish wedge pattern that took over on the hourly charts last week. The top of the channel can be a pivot point for minor correction, as observed in the past 24 hours.
The lower channel support level at $16,285 will likely turn into an accumulation point for the bulls. The $17,000 level, which previously served as resistance, is now firmly a support point. In case BTC/USD pair punches higher, the pair will face resistance at $19,000, where profit booking can result in heavy selling pressure.
Technical indicators are flashing red – How high will BTC/USD price go?
The cryptocurrency heatmap data suggests that sellers will take over the narrative once the pair settles near the $18,000 level. BTC whales and large investors are also likely book partial profits near the top of the present ascending channel.
Interestingly, bulls have multiple accumulation points between the $17,800 to $17,000 price range. It also signals that the bullish Bitcoin trend will sustain near the rising price channel’s upper end. Once the pair crosses $19,000, there won’t be much in the name of resistance, and BTC/USD won’t take long to once again climb atop $20K mountain.
Bitcoin’s bullish scenario creates a ‘Fear-Of-Missing-Out.’ The euphoria is taking over, and bulls are leaving no opportunity for the bears to take over. Every minor correction is used as a bounce-back pivot point. When, and if, the BTC/USD prints $19,000, many new avenues will open up for BTC/USD. Beyond $20,000, the upper end of the price will be anybody’s wild guess.
Considering the fundamentals and current geopolitical scenario, many analysts believe Bitcoin is still relatively cheap. What is certain is that 2020 will undoubtedly post new all-time highs for BTC/USD pair.
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.