Bitcoin, ohh Bitcoin. What have you been up to over the last week or so?
In what has been a rather quiet and boring week in terms of price action, Bitcoin has been hovering around the lower end of the $19,000 level.
Just as we pointed out last week, Bitcoin was sat in a nice buy zone and if it could bounce off support, we’d see nice gains.
That has happened and it’s started our next assault on $20,000 – eek!
Can Bitcoin Make it to $20,000?
Bitcoin successfully bounced off support down at the very edge of $19,000, albeit rather cautiously.
This meant that a significant amount of retracement had been completed for the next upwards movement to begin – something we’ve not been seeing in the recent bullishness.
Without this retracement, the gains were not sustainable, hence the drops down every time Bitcoin assaulted $20,000.
But, this new patch of retracement and “boring” activity is exactly what the market needs, allowing all the selling pressure to be bought up.
So long as a whale doesn’t come along and dump a ton of coins, then Bitcoin looks set on its path up towards $20,000.
It could take a little bit of time, especially if we see a bit more retracement once we get higher up the $19,000 level, but we’d expect to see it happen before the week is out.
However, even if Bitcoin does assault $20,000, it’s likely that the resistance will get the better of the price action and send Bitcoin back down into the mid $19,000 range.
While this might seem disappointing, we can once again see this dip as retracement, preparing for its next go at the resistance level.
Will Bitcoin Ever Break Through?
The biggest issue with Bitcoin pushing through its all-time high and over $20,000 is that there’s a ton of selling pressure up there.
Known as resistance, this selling pressure is so vast that it gobbles up all the buys and shoves Bitcoin right back down.
But, the good news is that as long as Bitcoin keeps getting close, it will keep nibbling away at all those sell orders.
In turn, this breaks down the resistance bit by bit, meaning that eventually there will have to be more buying pressure than selling, allowing Bitcoin to pass through the $20,000 mark with ease and remain there.
Unfortunately, that time doesn’t look like it’s going to be any time this year, and while we’ll see many attempts to break $20,000 before the new year, it won’t hold until well into 2021.
That being said, 2021 will be a huge year for Bitcoin as this bullishness is still very young and has a lot of fight left in it.
It might be a bold claim, but if this movement continues and these big firms keep buying up huge tranches of Bitcoin, we will likely see 2021 filled with spectacular fireworks and some crazy prices that none of us could have ever imagined.
Our best advice is to just hodl this one out. Just as we said last week, you’re going to need to be fast and set your stops fairly wide in order to turn some quick profit.
But, if you manage to pull it off, more power to you!
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