With investment risk appetite on the rise, Bitcoin took advantage and jumped towards $ 15,000, leaving that previous all-time high of nearly $ 20,000 a very close target.
If we talk about the fundamentals behind the bullish rally of BTC, from my perspective, it is largely anchored to the operation of this asset as a safeguard of value.
Currently even though we are seeing quite developed momentum to the upside, it is not unreasonable to think that it will spread further.
Right now a correction is healthy, but what assures us that it will happen soon, and if it does, it may not be necessary to look very low for demand.
Technical aspects indicate that it is not difficult for Bitcoin to seek an all-time high in 2020
The list of metrics, data, indicators, and fundamentals that support a long-term bullish view is really extensive, but this article would make us endless trying to review them all here.
The bullish rally that we are witnessing is increasingly similar to 2017. And it should be remembered that at that time, despite the fact that there were small corrections before reaching $ 19,000, it only took 7 days to pass the price it is at today BTC, up to the all-time high.
There are some key indicators that show us why a historical high for Bitcoin is very feasible this year, and that also provide data that is really easy to digest.
There are 3 that we are going to analyze today, below we list them:
Long-term RSI has plenty of room for bullish continuation
When we think about the current price of BTC, to many it may seem really high, and a correction looks more likely.
Even though this is true, we shouldn’t expect much pullback before a new all-time high is sought.
And it is that while collective thought sees how the upward momentum does not stop, this is only what is perceived when we analyze small time frames.
In the long term, the momentum that is developing still has a lot of room.
In the long-term index of relative strength of Bitcoin, recently shared by the renowned analyst Plan B, we see how the price is currently just in the middle. Quite far from being over buying as it happened in the all-time high reached in 2019.
BTC holdings on exchanges plummet
An indicator that shows us the activity of the holders is the amount of Bitcoins available in exchanges. With it, it is shown how supply is decreasing, while institutional demand grows galloping.
In the graph provided by Glassnode of this indicator, we observe how the largest percentage drop in units of BTC available in exchanges is occurring.
Lately we have been seeing how large institutions enter this market and monopolize large amounts of BTC. Knowing that it is supply and demand that determine prices, clearly the largest of the cryptocurrencies is currently in an advantageous position, strongly influenced by users who use it to store value and who have a long-term vision.
If we look at the monthly chart Bitcoin vs Dollar, the all-time high is just around the corner
With today’s behavior of BTC, reaching a new annual peak, the price is breaking the last relevant monthly barrier, located at $ 13,880.
At the top there is only the area of historical maximum surrounding $ 20,000, one that will probably be reached and overcome without major problem.
If we look at the price of Bitcoin from the monthly chart, we see how the upward momentum of the long-term trend is just beginning; and it should go looking for a new high above that previous all-time high.
According to Adam Back, renowned Cypherpunk and creator of the hashcash used in Bitcoin, after comparing the average performance of the 2 previous bull runs, he indicates that the momentum that seems to be starting should be looking for an ATH of $ 320,000 sometime in 2021.
In conclusion, knowing exactly if this year Bitcoin will reach a new all-time high is impossible; however I am very sure that it is not far from reaching it.
This is not to say that it is a good time to buy, far from it. It is necessary to have a very clear vision to enter today, at least having a good tolerance for risk, and preferably keeping an eye on the long term.
Corrections will come without a doubt, how strong, I wish I was a guess to know. But as I have always commented here, the best thing will always be to take advantage of them to take discount prices, and get on the train in favor of the major trends.
All our publications are informative in nature, so in no case should they be followed as investment advice.