Bitcoin (BTC) hit another high for 2020 and jumped over $ 18,000 for the first time in three years.

On November 17, BTC rose to $ 17,858 after a volume meeting sent the price sharply higher above $ 17,100 to $ 17,300, which many analysts believe will be a strong resistance level.

According to Decentrader founder Philbfilb, the Bitcoin price may continue to rally in the short term if basic core support levels continue.

A popular analyst tweeted the above infographic:

“The current Palestinian Authority can still very easily lead to a decline towards the golden ratio, which is currently 19 thousand.”

As shown in the weekly chart, Bitcoin is just steps from the peak time of $ 19,763 reached in December 2017, and over several time frames, the VPVR series shows little resistance above $ 17,000.

Analysts had expected the price to consolidate briefly in the range of $ 17,500 to $ 17,700 as some traders took profits, but the bulls seem to be pushing Bitcoin higher. Bitcoin has accumulated 13.06% so far since it broke the resistance of $ 16,000, so a consolidation period to create support for the next move higher is healthy and expected.

About the basics of today’s price action and the potential short-term consequences, said Matt Blume, Head of Global Sales at EQUOS:

“The market has expanded upwards and breaks the trend channel and seems to be entering a breakout phase. In a strong beef market, there is a tendency to call a peak. For me, the question is at what point the rally becomes unstable.”

Bitcoin price divided from the rising channel. Source: Matt Bloom, TradingView
When BTC broke through the $ 17,000 level, there was a lot of talk about whether the price will deviate near the 2017 high or break through the “resistance” and rise to a new all-time high.

According to Bloom:

“If we go up to $ 19,050 this week, I expect a fall to the $ 17,000 level. There is a lot of new money in Bitcoin, and they have never seen a bitcoin decline! In the past, Bitcoin has returned to sharp bulls, but this time it lost one element! Lack of automatic settlement of long positions using borrowed funds.
The growth in 2017 was only driven by dealers and the large volume of FOMO, or fear of being missed, but the scenario is very different in 2020.

The size of Bitcoin futures via the trading floor. Source: Data on digital assets.
During 2020, Cointelegraph reported the growing trend for institutional investors to buy large bitcoins. The data also show that volume growth in the regulated derivatives markets for Bitcoin and Ethereum (ETH) is a result of attracting larger hands to Bitcoin.

Bloom said:

“The fact that the market is now focused on gains during the institutional working week is a clear sign that real money is coming, which leads me to believe that the decline that many expect may be minimal.”

Source: CoinTelegraph

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