Bitcoin nailed a new all-time-high at $19 906 today in the wake of setting a new ATH yesterday at $19 856. The most anticipated $20K is yet to be reached, and according to the price action, establishment of a new ATH at levels around $20K is still possible.
Bitcoin attracts investors not only because it is considered a safe-haven asset but for its YTD returns and volatility. As the COVID-19 pandemic goes on and public holidays approach and the vaccine is yet to be approved, we might face another wave of coronavirus infections. The same was warned by the German Federal Chancellor Angela Merkel yesterday: “We’ll have to be very, very careful during the winter, otherwise we’ll end up directly in the next wave.” With that being said there were many examples lately where Bitcoin was a hand picked safe-haven asset. Investors selected Bitcoin over Gold as stimulus packs from CB of major economies could impact the Gold price very highly.
Bitcoin continues the climb towards new highs in an ascending expanding channel. The pair has retraced just recently to test the EMA50 which up-to-date acted as a strong support of the uptrend.
As long as Bitcoin remains above the EMA50, we can count on the uptrend. As seen on the chart below, there are two important levels Bitcoin needs to overtake and keep above in order to continue the bullish run, these are $18 279 and $18 788. Consolidation between these two levels may force investors to sell the asset, hence another impulse is required if buyers are willing to reach the $20K goal.
As holidays approach and some airlines are already eager to open their doors to travelers, Bitcoin may be in danger, because Christmas and a New Year are just as good sales seasons as the Black Friday, though volumes are larger and Bitcoin may act like in December 2017.
Senior Vice President at Overbit. Technical analyst, crypto-enthusiast, ex-VP at TradingView, medium and long-term trader, trades and analyses FX, Crypto and Commodities markets.