Prices of Bitcoin have managed to touch a new high of $16,765 in 2020 and the expectations of traders is a much higher rally within the closest term.
As seen on Binance, the Bitcoin price is now seen to be an all-time high standing at $16,717. This is a massive breakout for BTC. As a result, stock market traders are hoping for a very large scale rally to take place within the upcoming term itself.
Numerous reasons exist as to why the market analysts have to keep such high hopes for a prolonged upswing from the BTC prices. The very first reason is that Bitcoin was able to break out cleanly from the $16,000 level. Following that, BTC also hot $16,473 high peak on 13th November very rapidly and cleanly. The second reason being the “sell-side crisis” that is developing with the accumulation of Bitcoin as the miners keep doing their job properly. The third important reason is the overbought indicators have been easily overshadowed by the rising rally of Bitcoin.
Bitcoin Revision Proved Several Experts To Be Wrong In Their Estimates
Earlier on 17th November, John Bollinger, renowned trader as well as creator of Bollinger Band, made a statement regarding an incorrect correction of Bitcoin.
On 10th November, Bollinger stated that BTC has been showing patterns of topping short-term levels. During that period, he was not sure regarding the correction to be done by Bitcoin. Nonetheless, he stated that the market is expected to cool down and things will get much better very soon.
Numerous analysts have also expected BTC to experience a massive decline in the stock market. This was especially concerning the figures at the closing of the market at the end of the week.
Yet, to everyone’s surprise, Bitcoin continued to surge and witnessed an intense upward rally.
Bollinger declared that he was certainly wrong in making those assumptions regarding the drop of BTC prices and Bitcoin has shown strong signs of touching new and much higher price levels.
The demand for Bitcoin has been extremely up following their $10,000 breakout and almost 3,000 BTC was extracted at that time.
Positive Results Of The Vaccine Helped Bitcoin
When Pfizer announced the high effectiveness of their COVID-19 vaccine trial, there was a 3% drop in BTC prices in the next few hours.
However, after Moderna announced the positive outcome of their vaccine after the clinical trial, Bitcoin experienced a sudden 5% increase while gold surged by only 0.17%.
According to many trading analysts, the decline might prove to be beneficial as a “dip buying” chance for investors.
The mixture of sell-side crisis, technical impetus along with a raw motivation for an increased rally has caused Bitcoin to stabilize their price level over $16,000. Though the recent drop might make $16k as their support level.