Bitcoin’s price reached a new high in 2020, at $16,765, and traders expect a much bigger recovery to occur in the short term.
The price of Bitcoin (BTC) reached a new high of US$ 16,717 in 2020 at Binance. After the breakout, traders expect a larger recovery to occur in the short term.
There are several reasons why analysts expect a prolonged upward trend. First, Cryptosoft surpassed $16,000 cleanly, peaking at $16,473 on November 13. Second, there is a „crisis on the seller’s side“ forming as more BTC is accumulated in greater numbers than its production. Third, BTC has recovered despite indicators showing signs of overbought.
Bitcoin’s price must exceed this level to extend 6-week winning streak
Analysts were wrong about Bitcoin correction
Earlier today, John Bollinger, a veteran trader and creator of the Bollinger Bands indicator, said he was wrong about the Bitcoin correction.
On November 10th, Bollinger said that Bitcoin is showing a „short term coverage pattern“. At the time, Bollinger was not sure whether this would lead to a correction or consolidation, but he said he expected the market to cool down.
Several analysts expected Bitcoin to plummet, especially as it approached the weekly candle closure. However, BTC has recovered continuously, seeing its strength intensify. Bolinger said:
„It seems I was wrong about the possibility of a correction, all we got was a bit of consolidation and then we returned to the races. Wrong settings of $BTC/USD like this are signs of strength, so currently the path of least resistance is further up“.
Derivatives traders also pointed out that the decline in Bitcoins supply is leading to a crisis on the seller’s side. This trend may be causing BTC to rise, even while testing the main support levels.
Market Capitalization of $1 trillion is „next big thing“ for Bitcoin
A futures and options trader alias known as „Light“ said that about 3,000 BTC has been withdrawn daily since BTC reached $10,000. This trend shows that demand for Bitcoin is high and the miners refuse to sell BTC, which is optimistic for BTC. The trader said:
„Now at $16,600 of $11,000. Since the $10,000 rupture, ~3,000 BTC nets have been taken daily from BTC’s main centralized exchanges… Miners refuse to sell their recently halved rewards due to demand and are comfortably above break-even point. ”
BTC’s price reacts positively to vaccine advance
On November 12, when Pfizer announced a highly effective vaccine for the coronavirus, the price of Bitcoin fell almost 3% in a few hours.
This time, after the release of the expected positive results of the Moderna vaccine, Bitcoin increased almost 5%. In the same period, gold has been fighting, gaining only 0.17%.
Traders say that the level of US$ 15,5 thousand is „crucial“ after the price of Bitcoin falls below the parable
But, traders say that if Bitcoin falls as it did on November 12th, then this will represent a „falling buy“ opportunity. A trader known as Hsaka said:
„Last time, we had news of vaccines, and the $BTC showed bullish corrections, but finally succumbed to the correlation with gold. Probably a drop worth buying if history repeats itself and the opportunity presents itself. ”
The combination of technical factors, a crisis on the wind side, and the strength of the bullishness are keeping BTC stable above $16,000. Considering that BTC did not fall quickly after its rise, there is a strong argument that $16,000 is becoming a reliable support area.