Bitcoin is up roughly $ 18,000 and happy traders are calling for a higher-rated digital asset to surpass the 2017 record of $ 19,763. If you’re not a bear, it’s great to hit a new all-time high. But ideally, for a sustained rally, it is better to keep pace than a sudden rally.

BTC has grown steadily in recent weeks without extended periods of consolidation or any significant lows.

The chances of a burst peak increase
A trader alias ‘Squeeze’ identified the lack of consolidation in bitcoin as a trend since late October and suggested that this could dampen the momentum of the daily rally.

Although bitcoin’s speed has been high, the price has also surged nearly six times since the March crash. As BTC continues to rise without major adjustments, the likelihood of a significant drawdown increases. The merchant wrote:

“Without much correction, the reinforcements will be shorter. The explosion will stop soon. ”

Peter Brandt, a popular veteran trader who also monitors BTC price movements, expressed a similar opinion earlier this week. Brandt noted that in previous Turkish transactions, BTC has undergone nine adjustments to record gains.

In recent events, at least for now, Bitcoin has undergone two major fixes. Compared to historical trends, BTC has undergone much smaller corrections. He wrote:

“During the Bitcoin $ BTC bull market in 2015-2017, there were 9 significant corrections with the following averages: a 37% decline from high to low. 14 weeks from ATH to next ATH. There have been two 10% adjustments since the September low began.
After the retreat on November 8th, Bitcoin surged from $ 14,344 to $ 17,858 on Binance. In just ten days, BTC is up nearly 25% with a clear phase of consolidation.

A rally pattern accompanied by consolidation and sporadic corrections is key to a long-term rally as it neutralizes the futures market and reduces the likelihood of sudden explosions.

In technical analysis, a peak burst indicates a sudden and sudden drop in the price of an asset. For example, BTC experienced a peak explosion after a peak in 2017. Over the next 52 days, BTC fell by almost 70%.

As bitcoin is close to hitting over $ 20,000, traders expect bitcoin to fall before hitting $ 20,000. But there is a possibility that trading is busy, as many analysts seem to be anticipating a similar scenario.

Future funding rates are neutral
One of the variables that could lead to a continued rally in the short term is the degree of funding. On the major futures exchanges, the BTC futures funding rate hovers around 0.01%.

Futures exchanges in the cryptocurrency market use an automated cryptocurrency called “funding” to balance traders.

When most traders in the market buy bitcoins, the funding rate becomes positive. If this happens, long term contractors or buyers should motivate sellers and vice versa.

Major futures exchanges such as Binance Futures are showing a funding rate of 0.01%, indicating that today’s rally is not excessive.

Finally, traders still expect Bitcoin to hit an all-time high as the price approaches $ 18,000. Meanwhile, technical analysts point out that the recent Bitcoin price cycle shows that each rally has been followed by shorter periods of consolidation.

Source: CoinTelegraph