At the time of writing, Bitcoin had just surged to mark $13,000 as a fresh 2019 high: That’s an insane move so far! Since saying goodbye to the $8,000 level, Bitcoin hasn’t seen much in the way of corrections.
If you scroll back to the 2017 bull run, the path has been almost identical. Once Bitcoin broke up the ascending wedge pattern, as can be seen on the daily and weekly charts, the coin had fired its engines.
Whoever has followed the Bitcoin price for more than two years will remember what a parabolic move looks like. And here we are again.
To understand which levels could slow Bitcoin’s progress since breaking $12,000, let’s look back on those magical 30 days from mid-November 2017 to mid-December 2017 when Bitcoin’s price made its way to $20,000:
And here we are now – this is almost the same 4-hour chart, as of now:
The Road to $20,000
Support/Resistance: The nearest level of resistance is the $12,500 – $13,000 area at which we are currently. The $13,000 level was also resistance in January 2018. Breaking this would likely send Bitcoin to the $15,000 area since there is not much resistance along the way.
The next target would be the $16,400 – $16,650 zone, which saw the most severe correction during the bull run of 2017. After reaching $16,650 for the first time (on Dec. 7, 2018), Bitcoin saw $12,800 just two days later.
Next is $17,400 (the high from January 7, 2017), $18,000, $19,300 and $20,000. At the latter levels, we should expect no trouble for Bitcoin since there was not much resistance at the time, and the bulls should easily give the coin the necessary push to conquer $20,000 again.
From the bearish side, possible levels for support are the past resistance levels. The nearest level is $11,800 – $12,000. Below that lie the previous high of $11,200, $10,600, $9,800 – $10,000, and $9,400.
Daily chart’s RSI: This is exactly how a bull run looks. The RSI is nearing its yearly high in the 88 – 90 area. This could also potentially trigger a correction. If the parabolic move continues, it will be interesting and critical to see the RSI rising. Back in the 2017 bull run, the RSI produced a negative divergence. This means that the last leg to $20,000 was not followed by sufficient power or momentum to continue further as the RSI was pointing down.
Trading Volume: The last move has been followed by a decent amount of buyers. The green candles are getting higher as the price of Bitcoin increases and money comes in, a healthy bull trend.
Bitfinex open short positions: The open short positions are gaining momentum along with the rising Bitcoin price. There is now 29.2K worth of BTC open short positions. This is the highest level since May 11. However, Bitfinex will soon go down for a 7-hour maintenance period. This could cause something to develop.
BTC/USD Bitstamp 1-week chart
BTC/USD Bitstamp 1-day chart
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
Technical analysis tools by Coinigy.