- Bitcoin trend has broken past key resistances to target an all-time high of $19,783
- Unlike 2017, the current rally is mature with stable troughs and valleys
- Bitcoin HODLing has increased as BTC whales enjoy ever-increasing gains
Odds favor bulls as BTC/USD looks to print $22,000
Bitcoin is now trading above $18,500, and analysts are already predicting new all-time highs for the king of cryptocurrencies. The BTC/USD pair has touched an $18,900 high after three years. Despite the overheated market and BTC critics, crypto analysts are ecstatic to announce fresh new highs for the pair.
Back in 2017, when BTC touched $18,000, it went on to print its all-time high of $19,783 in the same week itself. The present parabolic Bitcoin trend is not like the exuberant highs of 2017, fuelled by ICO mania. In 2020, the pair is rising steadily and letting off steam now and then with minor corrections.
Crypto analysts are all praises for the mature rally displayed by the BTC/USD pair this year. No wonder they are busy predicting the next all-time high for BTC. An initial target that fits technical analysis is $22,000 by the end of December. Philip Swift, a crypto analyst, says the target is possible considering various technical indicators, institutional buying, BTC whale data, and the likely increase in HODLing.
Strong fundamentals help defy overbought technical indicators
Bitcoin has risen 154 percent in 2020. Consequently, the number of BTC addresses holding BTC for more than one year has also grown. The rise in long-term investors shows that BTC is being seen as a hedge against inflation. Again, it proves that despite the meteoric rise in BTC price, investors are still holding onto the coin expecting further bullish Bitcoin trend.
The benchmark cryptocurrency weathered the Coronavirus pandemic. It has shown remarkably well safe-haven credentials putting it on the same pedestal as gold. A further upside is highly likely given the current geopolitical scenario, on-chain metrics, and bullish technical chart analysis.
BTC‘s funding rate remains in a neutral zone, reflecting the balance between BTC sellers and buyers, especially in the future trading market. It shows that the market is still far away from excessive overheating. Furthermore, the increase in BTC withdrawals from the exchanges also reflects the HODLing trend.
Bitcoin trend technical analysis – Weekly close above $18,500
Bitcoin price is currently trading above $18,000 and is set to close the week above this crucial level. For the first time since 2017, we are witnessing a weekly close above this psychological level. The widespread bullish momentum is evident on the weekly timeframe. The moving averages are moving further up with a rather sharp slope.
The 8-week EMA and SMA are crossing on the upward trajectory, confirming the bullish Bitcoin trend. These long-term averages will support the pair in case of an extended pullback near the $14,000 level. However, the lower highs are an indication that the bulls are reaching exhaustion. The underlying buying force may be weakening as we step into the last week of November.
Small pullbacks have been the hallmark of the current BTC rally that began three months ago. The weakening bullish resolve also reflects a bearish divergence in RSI. However, traders must not expect a massive pullback as medium-term and long-term Bitcoin trends are still firmly in the bullish zone. A sharp rally with considerable buying momentum will be all it takes to print fresh all-time highs for BTC/USD.
Optimistic weekly Bitcoin trend bolsters further bull run scenario
The Bitcoin trend has been bullish for the past seven weeks. The coin has been rising steadily for the past two months posting only green candles on the weekly charts. Such widespread optimism is raising doubts about how long the bulls will maintain the momentum. In the last seven days, BTC/USD has risen 13 percent despite minor corrections along the way.
As BTC rises further, crypto investors are seeking shelter in affordable altcoins. Consequently, altcoins’ price is also growing steadily since more money is flowing into the altcoin realm. Historically, altcoins rallies came after a colossal Bitcoin rally because investors explore altcoins after BTC becomes pricier. Both Ripple and Ethereum are posting fresh new annual highs.
The weekly support lies at $14,000, where the 100-day SMA is hovering to support any downfall. Also, there are vast BTC whale ‘Buy Walls’ near the $17,000 level ready to arrest any near-term decline in 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.