Bitcoin advanced to almost $16,000 as early as the 6th (local time), peaked after January 2018, and returned some of the gains. Bitcoin pointed to $10,5483.83, up 2.72% from the previous 24 hours at the coin market cap at 4:7 pm on the 6th of New York time. Bitcoin’s peak in the last 24 hours was $15903.44 and its low was $15,036.66.
As Bitcoin has risen by almost 50% over the past four weeks, the current compaction is considered a very natural process.
*Bitcoin price and volume trend in the last month
The overall atmosphere of the cryptocurrency market is in a very encouraging state as Bitcoin successively breaks through the 13,000/4000/5000 dollar levels, which were considered a strong resistance line, in a short period of time. Recent data have also been released that the supply of bitcoin is not keeping up with market demand.
Mainstream economic media such as CNBC, Bloomberg, and Forbes are also expressing interest in Bitcoin’s rally. In the near future, expectations for the establishment of a new record point as well as re-challenge the previous record high are growing. Technically, there is an analysis that further rally of Bitcoin is possible.
According to Mesari, a digital market analyst firm, in 2017, Bitcoin stayed above $15,000 for only 20 days, and after breaking through $15,000, it rapidly advanced toward an all-time high of about $20,000. Based on this data, Matt Blum, sales/trading head of digital asset company Diginex, describes the above $15,000 as a “price vacuum” for Bitcoin. There is no resistance above $15,000, which means that Bitcoin could reach $20,000 sooner or later.
In an email to CoinDesk, Dennis Binokurov, research head at cryptocurrency brokerage Biquant, mentioned the potential for a potential squeeze in the bitcoin options market. He predicted, “Bitcoin may rise towards $17,000 in the next few days, due to the combination of the options market squeeze, the uncertainties surrounding the US election, and the impact of the coronavirus re-proliferation.”
Some observers describe Bitcoin’s recent steep rise as a so-called FOMO sentiment fearing the loss of good opportunities. However, as a result of analyzing Google’s’bitcoin price’ search data, CoinDesk diagnosed that there are no signs of full-scale participation by retail investors yet, and the current rally is driven by institutional investors. This suggests that the full-fledged FOMO phenomenon has not yet begun, and there is room for further rise in Bitcoin.
*Bitcoin/US Dollar Weekly Chart
However, the possibility of Bitcoin’s adjustment in the short term cannot be ruled out. The Relative Strength Index (RSI) on the technology chart shows that Bitcoin is currently overbought. The bitcoin market’s fear and greed index reached 90 as of the 6th, reaching the highest level in several years. It means the market is now in a state of extreme greed. Bitcoinist pointed out that extreme greed often coincides with short-term highs.
Through weekly chart analysis, Cointelegraph explains the current situation of Bitcoin as facing the final resistance zone of $15,800 to $16,800, which is facing an all-time high price challenge. And he pointed out that the probability of breaking through this resistance zone with just one attempt is not high. This is because Bitcoin’s recent rally has been too steep.
Cointelegraph presented a short-term support level of Bitcoin at $14,200 to $14,200 based on daily chart analysis. In addition, if Bitcoin undergoes an adjustment, it has pointed to a potential low of $12,800 to $13,100, and around $11,600, as points to trigger the entry of a potential low to buy.
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