Bulls pushed Bitcoin price to $18,000, but analysts still expect a ‘shallow’ correction before a new all-time high.
Bitcoin (BTC) just set another 2020 high by rallying above $18,000 for the first time in three years.
On Nov. 17, the BTC price rallied to $17,858 after a highvolume surge pushed the price cleanly through the $17,100 to $17,300 range that many analysts believed would be a strong resistance level.
According to Decentrader co-founder Filbfilb, Bitcoin’s price could continue to march higher in the short term if key underlying supports hold.
The popular analyst tweeted the above chart and said:
“The current PA could still very easily result in a blow-off towards the Golden Ratio Multiplier, currently at 19K.”
As shown on the weekly chart, Bitcoin is just a hair away from snatching the $19,763 all-time high reached on December 2017, and on multiple timeframes, the volume profile visible range (VPVR) shows there is little resistance above $17,000.
Analysts were expecting the price to briefly consolidate in the $17,500 to $17,700 range as some traders took profits, but bulls appear intent upon pushing BTC higher. To date, Bitcoin has rallied 13.06% since breaking through the $16,000 resistance, therefore a period of consolidation to build support for the next leg up is healthy and expected.
As for the fundamentals behind today’s price move and possible outcomes for the short term, Matt Blom, the head of global sales trading at EQUOS, said:
“The market has extended to the upside, breaking above the trend channel and appears to be entering a blow-out phase. With a strong bull market, the tendency is to call a top. For me, the question is at what point does the rally become unsustainable.”