The price of Bitcoin (BTC) shows a parabolic upward trend. It has risen continuously above major resistance levels over the past 48 hours.
In the short term, however, $ 16,000 remains the biggest hurdle. It also means that above $ 16,000 there is no real resistance to the all-time high of $ 20,000.
Based on Bitcoin’s strong timeframe high , the path to a new record high has become increasingly likely.
Bears or bulls – who has the upper hand at $ 16K?
Over the past week, sellers have been betting heavily against Bitcoin – especially short sellers in the futures market. At $ 14,000 and $ 15,000, traders on Binance Futures have been shorting Bitcoin more and more frequently.
As a result Bitcoin System refinancing rate has always remained neutral or negative despite the ongoing steep rally.
If Bitcoin’s low refinancing rate remains stable, that is crucial as it suggests that the spot market is leading the rally. The majority of traders in the derivatives are not buying or longing BTC, which suggests that the rally is not crowded.
So when Bitcoin crosses the $ 16,000 mark, the path to a new all-time high will be relatively easy.
Whether Bitcoin will break out of the $ 16,000 limit or experience a rejection remains in the limelight. Technical analysts remain uncertain about the trend of BTC, if only because of its sheer dynamism.
Historically, in parabolic rallies, BTC tends to strive upwards. The concurrence of current momentum and the parabolic nature of the price trend suggests that there is a likelihood of a prolonged breakout.
Michael van de Poppe, a full-time trader on the Amsterdam Stock Exchange, names $ 16,000 as a key level. He writes:
“The past few hours have been accelerating as we approach the next $ 16,000 weekly level. US stocks are doing their job as well, up about 7% (Nasdaq) in the past 36 hours. Let’s see where $ BTC will end, before or after $ 16,000. “
On-chain data stays positive
According to data from intotheblock, a blockchain analysis firm, the in and out of the money (IOMAP) scores suggest there is little resistance up to $ 17,000. The analysts on this:
“Our IOMAP indicator shows that #Bitcoin has little resistance to moving further towards $ 17,000. The greatest support is between $ 13,556.17 and $ 14,000, with 1.06 million addresses previously buying $ 763,000 BTC. “
If Bitcoin climbs to $ 17,000, as the IOMAP indicator shows, it would enable it to hit a record high before the end of the year.
An all-time high by late 2020 would put BTC in an ideal position for a broader rally in 2021, given the cycle after the halving. From 2016 to 2017, BTC continued to recover for 15 months after halving.